Petrobras prices offers to buy notes from 13 series for up to $2.5 billion

By Wendy Van Sickle

Columbus, Ohio, June 8 – Brazil’s Petroleo Brasileiro SA (Petrobras) announced that wholly owned subsidiary Petrobras Global Finance BV has begun cash tender offers for any and all of its outstanding dollar-denominated notes from 13 series for a maximum consideration of $2.5 billion, according to a company release.

Petrobras is offering to purchase the following notes, listed in order of acceptance priority level at the amounts listed per $1,000 principal amount:

• $1,467,091,000 outstanding 6Ύ% global notes due June 2050 (Cusip: 71647NBG3) at a price of $1,157.51, determined using the 1.875% U.S. Treasury due Feb. 15, 2051 and a fixed spread of 340 basis points;

• $3,065,085,000 outstanding 5.093% global notes due January 2030 (Cusip: 71647NBE8, 71647NBF5, N6945AAL1) at a price of $1,089.04, determined using the 1.625% U.S. Treasury due May 15, 2031 and a fixed spread of 233 bps;

• $774,384,000 outstanding 6.25% global notes due March 2024 (Cusip: 71647NAM1, 71647NAM11) at a price of $1,135.06, determined using the 0.25% U.S. Treasury due May 15, 2024 and a fixed spread of 96 bps;

• $1,061,324,000 outstanding 5.299% global notes due January 2025 (Cusip: 71647NAT6, N6945AAJ6) at a price of $1,131.96, determined using the 0.75% U.S. Treasury due May 31, 2026, and a fixed spread of 77 bps;

• $1,743,620,000 outstanding 6.9% global notes due March 2049 (Cusip: 71647NBD0) at a price of $1,195.91, determined using the 1.875% U.S. Treasury due Feb. 15, 2051 and a fixed spread of 328 bps;

• $983,216,000 outstanding 6 7/8% global notes due January 2040 (Cusip: 71645WAQ4) at a price of $1,208.90, determined using the 2.25% U.S. Treasury due May 15, 2041 and a fixed spread of 298 bps;

• $1,071,541,000 outstanding 8Ύ% global notes due May 2026 (Cusip: 71647NAQ2) at a price of $1,293.93, determined using the 0.75% U.S. Treasury due Feb. 15, 2026 and a fixed spread of 164 bps;

• $1,775,174,000 outstanding 7 3/8% global notes due January 2027 (Cusip: 71647NAS8) at a price of $1,234.75, determined using the 0.750% U.S. Treasury due May 31, 2026 and a fixed spread of 204 bps;

• $1,748,126,000 outstanding 5.999% global notes due January 2028 (Cusip: 71647NAW9, N6945AAK3, 71647NAY5) at a price of $1,159.93, determined using the 1.625% U.S. Treasury due May 15, 2031 and a fixed spread of 177 bps;

• $878,965,000 outstanding 5Ύ% global notes due February 2029 (Cusip: 71645WAS0) at a price of $1,141.35, determined using the 1.625% U.S. Treasury due May 15, 2031 and a fixed spread of 208 bps;

• $1,013,134,000 outstanding 6Ύ% global notes due January 2041 (Cusip: 71645WAS0) at a price of $1,185.05, determined using the 2.25% U.S. Treasury due May 15, 2041 and a fixed spread of 309 bps;

• $473.77 million outstanding 5 5/8% global notes due May 2043 (Cusip: 71647NAA7) at a price of $1,108.24, determined using the 2.25% U.S. Treasury due May 15, 2041 and a fixed spread of 268 bps; and

• $1,286,710,000 outstanding 7Ό% global notes due March 2044 (Cusip: 71647NAK5) at a price of $1,227.04, determined using the 2.25% U.S. Treasury due May 15, 2041 and a fixed spread of 335 bps.

Pricing was set at 11 a.m. ET on June 8.

The offers will expire at 5 p.m. ET on June 8 and are expected to settle on June 11.

Notes tendered may be withdrawn at any time prior to the expiration time.

The offers are not contingent on the tender of any minimum principal amount of notes, and each offer is independent of and not conditioned on completion of the other offers.

However, the offers are subject to a financing condition. Petrobras plans to price new notes, proceeds of which would be used to purchase existing notes under the tender offers.

BofA Securities Inc. (800 294-1322), Goldman Sachs & Co. LLC (212 357-1452), Itau BBA USA Securities Inc. (212 710-6749), J.P. Morgan Securities LLC (212 834-3424), MUFG Securities Americas Inc. (877 649-6848), Santander Investment Securities Inc. (855 403-3636) and UBS Securities LLC (888 827-7275) are the dealer managers for the offers.

Global Bondholder Services Corp. (866 470-3800 or 212 430-3774, http://www.gbsc-usa.com/Petrobras/) is the depositary and information agent.

The energy company is based in Rio de Janeiro.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.