Puerto Rico McDonald’s operator gets $200M credit facility
Arcos Dorados Holdings Inc., which operates McDonald’s restaurants in Puerto Rico and Latin America, said it has entered into a new $200 million syndicated revolving credit facility with its subsidiary, Arcos Dorados B.V.
The agreement replaces earlier revolving credit facilities totaling $75 million, which the company said “were or will be terminated as part of this transaction.”
The credit line has a four-year maturity that began Sept. 30, with an optional one-year extension, and carries an interest rate ranging from the Secured Overnight Financing Rate (SOFR) plus 210 basis points to SOFR plus 240 basis points. SOFR is the U.S. benchmark interest rate based on overnight Treasury repurchase market transactions. As of the announcement, the facility remained undrawn.
“This transaction reinforces Arcos Dorados’ commitment to pursuing a solid financial strategy and reflects the continued trust and support of our long-standing banking partners,” said Mariano Tannenbaum, executive vice president and chief financial officer.
“We plan to continue proactively managing our capital structure to ensure sustainable growth while leveraging our investment-grade credit rating, efficient treasury operations and strong balance sheet to support our strategic initiatives and ongoing operations,” Tannenbaum added.
The credit line was arranged by a syndicate of seven institutions. JPMorgan Chase Bank served as sole lead arranger and bookrunner. Banco Bilbao Vizcaya Argentaria, Banco Santander (Brazil), Bank of America and BNP Paribas acted as mandated lead arrangers, while Banco de Crédito del Perú and FirstBank Puerto Rico participated as lead managers.
Davis Polk & Wardwell LLP served as U.S. legal counsel to Arcos Dorados. Milbank LLP represented JPMorgan Chase.
