By Christine Van Dusen
Atlanta, May 17 – Petroleo Brasileiro SA’s (Petrobras) wholly owned subsidiary, Petrobras Global Finance BV, priced a combined $6.75 billion of five and 10-year notes (expected ratings: B3/B+/BB) in two tranches on Tuesday alongside a tender offer, a syndicate source said.
The $5 billion notes due in 2021 priced to yield 8 5/8%, following talk in the 9% area.
The $1.75 billion notes due in 2026 priced to yield 9%, following talk in the 9¼% area.
BB Securities, BofA Merrill Lynch, JPMorgan and Santander were the bookrunners for the Securities and Exchange Commission-registered deal.
Other details were not immediately available on Tuesday.
Petrobras is tendering for any and all of one series of notes and up to a purchase price of $3 billion in the waterfall tender offers for 10 other note series, according to a company press release.
The tender offers will end at 11:59 p.m. ET on June 14.
Petrobras Global Finance plans to offer global notes in one or more series, subject to market conditions, with proceeds to be used to repurchase tendered notes, as well as for general corporate purposes.
The waterfall offers are conditioned on the issue of the new notes.
Petrobras is an energy company based in Rio de Janeiro.
| Issuer: | Petrobras Global Finance BV
|
| Amount: | $6.75 billion
|
| Description: | Senior unsecured notes
|
| Bookrunners: | BB Securities, JPMorgan, BofA Merrill Lynch, Santander
|
| Trade date: | May 17
|
| Settlement date: | May 23
|
| Expected ratings: | Moody's: B3
|
| S&P: B+
|
| Fitch: BB
|
| Distribution: | SEC registered
|
|
|
| 2021 notes
|
| Amount: | $5 billion
|
| Maturity: | May 23, 2021
|
| Yield: | 8 5/8%
|
| Price talk: | 9% area
|
|
|
| 2026 notes
|
| Amount: | $1.75 billion
|
| Maturity: | May 23, 2026
|
| Yield: | 9%
|
| Price talk: | 9¼% area
|
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