By Christine Van Dusen and Paul A. Harris
Atlanta, Oct. 23 - Brazil's Petrobras International Finance Co. priced a benchmark-sized offering of dollar-denominated senior unsecured notes (Baa1/BBB-/BBB) in 10- and 30-year tranches, according to a market source.
Petrobras sold $2.5 billion of 5.75% notes due January 2020 at 99.06 to yield 5.875% and $1.5 billion of 6.875% notes due January 2040 at 98.452 to yield 7%.
Both tranches came at the tight end of talk in the area of 6% and 7.125% respectively.
Citigroup, HSBC, JP Morgan and Santander are the joint bookrunners for the Securities and Exchange Commission registered deal. BB Securities and Societe Generale are the co-managers.
Proceeds will be used to repay borrowings under lines of credit used to finance capital expenditures. Any remaining funds will go to general corporate purposes.
Petrobras is an energy company based in Rio de Janeiro, Brazil.
| Issuer: | Petrobras International Finance Co.
|
| Issue: | Senior unsecured notes
|
| Amount: | $4 billion
|
| Bookrunners: | Citigroup, HSBC, JP Morgan, Santander
|
| Pricing date: | Oct. 23
|
| Settlement: | Oct. 30
|
| Distribution: | Off shelf
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
|
|
| Ten-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | Jan. 20, 2020
|
| Coupon: | 5.75%
|
| Price: | 99.06
|
| Yield: | 5.875%
|
| Spread: | 238.5 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
|
|
| Thirty-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Jan. 20, 2040
|
| Coupon: | 6.875%
|
| Price: | 98.452
|
| Yield: | 7%
|
| Spread: | 270.6 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
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