Arcos Dorados B.V. reported that holders of its 6.125% sustainability‑linked senior notes due 2029 have tendered $134.8 million, representing 38.51% of the $350 million principal outstanding. The early‑tender deadline was February 12, 2026, and the offer will remain open until March 2, 2026, with settlement expected on February 17.
The company is using a $150 million tranche of new bank debt, secured through its Brazilian subsidiary in December 2025 at an estimated cost of 2.53%, to fund the repurchase. By replacing higher‑coupon notes with lower‑cost debt, Arcos Dorados expects to reduce its average U.S. dollar cost of long‑term debt by roughly 55 basis points, a key component of its sustainability‑linked debt management strategy.
The notes being tendered carry a 6.125% coupon and are linked to environmental and social performance targets. With $350 million outstanding, the $134.8 million tendered amount brings the company closer to fully retiring the 2029 notes, thereby tightening its balance sheet and improving debt‑to‑equity ratios.
CFO Mariano Tannenbaum emphasized that maintaining an efficient capital structure is essential to support the company’s growth across the 21 countries and territories where it operates. He noted that the tender offer demonstrates Arcos Dorados’ ability to capitalize on market opportunities to enhance financial flexibility while aligning its capital structure with long‑term strategic goals.
Beyond the debt transaction, Arcos Dorados has outlined an expansion plan that includes opening 105 to 115 new restaurants in 2026, following 102 openings in 2025. The company also clarified its outlook for Q1 2026, stating it expects sequentially higher systemwide comparable sales growth than in Q4 2025, supported by stronger local currencies in its main markets.
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