Petrobras sets price talk for benchmark four-part dollar-denominated notes offering

By Paul A. Harris

Portland, Ore., Jan. 31 - Petroleo Brasileiro SA (Petrobras) set price talk on a benchmark four-part offering of dollar-denominated notes (A3/BBB/BBB) on Tuesday, according to an informed source.

A tranche of new three-year notes is talked at a 290 basis points area spread to Treasuries.

A tranche of new five-year notes is talked in the Treasuries plus 300 bps area.

An add-on to the 5 3/8% notes due Jan. 27, 2021 is talked in the Treasuries plus 310 bps area.

Finally, an add-on to the 6¾% notes due Jan. 27, 2041 is talked in the Treasuries plus 310 bps area.

It was expected that the deal could price as early as Tuesday night, according to a buyside source who spoke by telephone heading into the Tuesday New York close.

However terms are not expected to circulate widely before Wednesday morning, the source added.

BB Securities, Citigroup, Banco Itau, BBVA, JPMorgan, Morgan Stanley and Banco Santander are the leads.

The Rio de Janeiro-based energy company plans to use the proceeds for general corporate purposes and to fund capital expenditures.

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