In another major capital markets transaction in Latin America, Milbank, Tweed, Hadley & McCloy LLP has served as legal advisor to the initial purchasers in a $146 million Rule 144A/Regulation S debt offering by leading Latin American restaurant operator Arcos Dorados Holdings Inc.
The notes represent a reopening of Arcos’ 10.25% five-year senior unsecured notes originally offered in July 2011. The reopened notes, priced at $275 million Brazilian reais, mature on July 13, 2016.
The company is using the proceeds – along with existing five-year-notes also sold in 2011 – for capital expenditures and other general corporate purposes.
Arcos is the largest fast food chain in Latin America and Caribbean and the largest McDonald’s franchisee worldwide in terms of systemwide sales and number of restaurants. The company operates and franchises some 1,840 McDonald’s eateries across the region, from Argentina, Brazil, Mexico, Chile and Colombia, to Aruba, Costa Rica, Panama, Puerto Rico, Martinique, Uruguay, the Virgin Islands and Venezuela, among other countries and territories.
The Milbank deal team included Marcelo Mottesi, head of the firm’s Securities group, along with Securities partner Paul Denaro, associate Matthew Vidal and international attorney Santiago Noguerol. Tax partner Andrew Walker provided tax advice.
