Arcos Dorados Announces Proposed Offering of Senior Notes

Arcos Dorados Holdings Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”) today announced that it intends to offer senior unsecured notes (the “Notes”) in a private placement to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non U.S. persons in accordance with Regulation S under the Securities Act. The Notes are expected to be guaranteed on a senior unsecured basis by certain of the Company's subsidiaries. The Notes constitute a reopening of previously issued US$265,000,000 aggregate principal amount of the Company’s 5.875% Notes due 2027.

The timing of pricing and terms of the Notes are subject to market conditions and other factors. The proceeds from the Notes offering will be used by the Company (i) to repay short-term indebtedness and (ii) for general corporate purposes.

Following the pricing of the offering of Notes, the Company expects to commence an exchange offer to exchange any and all of its 6.625% Notes due 2023 (the “2023 Notes”) for additional 5.875% Notes due 2027 (the “Exchange Notes”). The Exchange Notes would be offered as additional notes under the indenture pursuant to which the Company expects to issue the Notes. As of the date hereof, there was $348,069,000 aggregate principal amount of 2023 Notes outstanding. The commencement of the exchange offer is not contingent upon the offering of the Notes. There can be no assurance that the Company will commence the exchange offer, or if it does commence it, that it will be successful.

This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities, nor will there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state or jurisdiction. The Notes and related guarantees have not been registered under the Securities Act, or any applicable state securities laws, and will be offered only to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. Unless so registered, the Notes and related guarantees may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and any applicable state securities laws.