Filed Pursuant to Rule 424(b)(2)
Registration No. 33-60939
PRICING SUPPLEMENT NO. 6 DATED JANUARY 6, 1998
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(To Prospectus dated July 28, 1995 and
U.S. Prospectus Supplement dated August 4, 1995)
U.S.$584,662,000
McDONALD'S CORPORATION
Medium-Term Notes, Series E
(Fixed Rate Notes)
Due from Nine Months to 60 Years from Date of Issue
The following description of the terms of the Notes offered hereby
supplements, and to the extent inconsistent therewith replaces, the
descriptions included in the Prospectus and Prospectus Supplement
referred to above, to which descriptions reference is hereby made.
Principal Amount: U.S.$200,000,000
Issue Price: 99.924% of the principal amount of the Notes
Original Issue Date: January 9, 1998
Stated Maturity: January 15, 2008
Interest Rate: 5.95% per annum
Interest Payment Dates: January 15 and July 15 of each year, commencing
July 15, 1998
(Applicable only if other than February 15 and August 15 of each
year)
Regular Record Dates: January 1 and July 1 of each year
(Applicable only if other than February 1 and August 1 of each year)
Form: /x/ Book-Entry / / Certificated
Specified Currency: U.S. dollars
(If other than U.S. dollars, see attachment hereto)
Option to Receive Payments in Specified Currency: / / Yes / / No
(Applicable only if Specified Currency is other than U.S. dollars and
if Note is not in Book Entry form)
Authorized Denominations: U.S.$1,000 minimum
(Applicable only if other than U.S.$100,000 and increments of
U.S.$1,000 or if Specified Currency is other than U.S. dollars)
Method of Payment of Principal:
(Applicable only if other than immediately available funds)
Optional Redemption: / / The Notes cannot be redeemed prior to Stated
Maturity.
/x/ The Notes can be redeemed prior to Stated
Maturity.
Optional Redemption Dates: The Notes will be redeemable in whole or
in part, at the option of McDonald's Corporation (the "Company") at any
time (a "Company Redemption Date").
Redemption Prices:
/ / The Redemption Price shall initially be % of the
principal amount of the Note to be redeemed and shall decline at each
anniversary of the initial Optional Redemption Date by % of the
principal amount to be redeemed until the Redemption Price is 100% of
such principal amount; provided, however, that in the case of an Original
Issue Discount Note, the Redemption Price shall be the Amortized Face
Amount of the principal amount to be redeemed.
/x/ Other:
The Notes will be redeemable at a redemption price equal to the
greater of (i) 100% of the principal amount of the Notes to be redeemed
or (ii) the sum of the present values of the remaining scheduled payments
of principal and interest thereon discounted to the Company Redemption
Date on the semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the Treasury Rate plus 10 basis points, plus, in
either case, accrued and unpaid interest on the principal amount being
redeemed to the Company Redemption Date.
"Treasury Rate" means, with respect to any Company Redemption
Date, the rate per annum equal to the semi-annual equivalent yield to
maturity of the Comparable Treasury Issue, assuming a price for the
Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such Company
Redemption Date.
"Comparable Treasury Issue" means the United States Treasury
security selected by an Independent Investment Banker as having a
maturity comparable to the remaining term of the Notes to be redeemed
that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the remaining term of the Notes.
"Independent Investment Banker" means one of the Reference Treasury
Dealers appointed by First Union National Bank, or its successor, as
Trustee (the "Trustee") after consultation with the Company.
"Comparable Treasury Price" means, with respect to any Company
Redemption Date, (i) the average of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) on the third business day preceding such Company
Redemption Date, as set forth in the daily statistical release (or any
successor release) published by the Federal Reserve Bank of New York and
designated "Composite 3:30 p.m. Quotations for U.S. Government
Securities" or (ii) if such release (or any successor release) is not
published or does not contain such prices on such business day, (A) the
average of the Reference Treasury Dealer Quotations for such Company
Redemption Date, after excluding the highest and lowest such Reference
Treasury Dealer Quotations, or (B) if the Trustee obtains fewer than four
such Reference Treasury Dealer Quotations, the average of all such
Quotations. ``Reference Treasury Dealer Quotations'' means, with respect
to each Reference Treasury Dealer and any Company Redemption Date, the
average, as determined by the Trustee, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Trustee by such Reference
Treasury Dealer at 5:00 p.m. on the third business day preceding such
Company Redemption Date.
``Reference Treasury Dealer'' means J.P. Morgan Securities Inc. and
any additional reference dealers appointed by the Company at the sole
discretion of the Company, and their respective successors; provided,
however, that if any of the foregoing shall cease to be a primary U.S.
Government securities dealer in New York City (a ``Primary Treasury
Dealer''), the Company will substitute therefor another Primary Treasury
Dealer.
Notice of any redemption by the Company will be mailed at least 30
days but not more than 60 days before any Company Redemption Date to each
holder of Notes to be redeemed.
Unless the Company defaults in payment of the redemption price, on
and after any Company Redemption Date interest will cease to accrue on
the Notes or portions thereof called for redemption.
Sinking Fund: /x/ The Notes are not subject to a Sinking Fund.
/ / The Notes are subject to a Sinking Fund.
Sinking Fund Dates:
Sinking Fund Amounts:
Amortizing Note: / / Yes /x/ No
Amortization Schedule:
Optional Repayment: / / Yes /x/ No
Optional Repayment Dates:
Optional Repayment Prices:
Original Issue Discount Note: / / Yes /x/ No
Total Amount of OID:
Yield to Stated Maturity:
Initial Accrual Period OID:
Calculation Agent (if other than Principal Paying Agent):
Agent's discount or commission: .650% of the principal amount of the
Notes
Net proceeds to Company (if sale to Agent as principal): 99.274% of the
principal amount of the Notes
Agent's Capacity: / / Agent /x/ Principal
Agents: J.P. Morgan & Co.
Merrill Lynch & Co.
Goldman, Sachs & Co.
Salomon Smith Barney
Morgan Stanley Dean Witter
Chase Securities Inc.
BancAmerica Robertson Stephens
CUSIP: 580 13 MDE 1
Plan of Distribution: J.P. Morgan Securities Inc. is acting as a
representative of the Agents listed above, each
of which has severally agreed to purchase the
principal amount of the Notes set forth opposite
its name:
J.P. Morgan Securities Inc. $36,000,000
Merrill Lynch, Pierce,
Fenner & Smith Incorporated 36,000,000
Goldman, Sachs & Co. 36,000,000
Salomon Brothers Inc 36,000,000
Morgan Stanley & Co. Incorporated 36,000,000
Chase Securities Inc. 10,000,000
BancAmerica Robertson Stephens 10,000,000
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$200,000,00
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Notwithstanding the above, J.P. Morgan Securities Inc. has agreed to
purchase or cause to be purchased any Note which any defaulting Agent or
Agents have agreed but failed or refused to purchase.
