By Christine Van Dusen
Atlanta, Feb. 1 - Brazil's Petrobras International Finance Co. priced a $7 billion issue of notes due 2015, 2017, 2021 and 2041 (A3/BBB/BBB), a market source said.
The deal included $1.25 billion 2 7/8% notes due 2015 that priced at 99.499 to yield 3.051%, or Treasuries plus 275 basis points. The notes were talked at the Treasuries plus 290 bps area.
The second tranche totaled $1.75 billion 3½% notes due 2017 that priced at 99.419 to yield. 3.628%, or Treasuries plus 290 bps. The notes were talked in the Treasuries plus 300 bps area.
The deal also included a $2.75 billion add-on to the company's existing 5 3/8% notes due Jan. 27, 2021, which priced at 104.181 to yield 4.796%, or Treasuries plus 295 bps. Price talk was set in the Treasuries plus 310 bps area.
And the last tranche - a $1.25 billion add-on to the company's 6¾% notes due Jan. 27, 2041 - priced at 112.208 to yield 5.938%, or Treasuries plus 295 bps. The notes were talked in the Treasuries plus 310 bps area.
BB Securities, Citigroup, Itau BBA, JPMorgan, Morgan Stanley and Santander were the bookrunners for the Securities and Exchange Commission-registered deal.
Proceeds will be used for general corporate purposes and capital expenditures.
Petrobras International Finance is a unit of Petroleo Brasileiro SA (Petrobras), an energy company based in Rio de Janeiro.
| Issuer: | Petrobras International Finance Co.
|
| Amount: | $7 billion
|
| Description: | Notes
|
| Bookrunners: | BB Securities, Citigroup, Itau BBA, JPMorgan, Morgan Stanley, Santander
|
| Trade date: | Feb. 1
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Distribution: | Securities and Exchange Commission registered
|
|
|
| Notes due 2015
|
| Amount: | $1.25 billion
|
| Maturity: | 2015
|
| Coupon: | 2 7/8%
|
| Price: | 99.499
|
| Yield: | 3.051%
|
| Spread: | Treasuries plus 275 bps
|
| Price talk: | Treasuries plus 290 bps area
|
|
|
| Notes due 2017
|
| Amount: | $1.75 billion
|
| Maturity: | 2017
|
| Coupon: | 3½%
|
| Price: | 99.419
|
| Yield: | 3.628%
|
| Spread: | Treasuries plus 290 bps
|
| Price talk: | Treasuries plus 300 bps area
|
|
|
| Notes due 2021
|
| Amount: | $2.75 billion add-on
|
| Maturity: | Jan. 27, 2021
|
| Coupon: | 5 3/8%
|
| Price: | 104.181
|
| Yield: | 4.796%
|
| Spread: | Treasuries plus 295 bps
|
| Price talk: | Treasuries plus 310 bps area
|
|
|
| Notes due 2041
|
| Amount: | $1.25 billion
|
| Maturity: | Jan. 27, 2041
|
| Coupon: | 6¾%
|
| Price: | 112.208
|
| Yield: | 5.935%
|
| Spread: | Treasuries plus 295 bps
|
| Price talk: | Treasuries plus 310 bps area
|
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