By Christine Van Dusen
Atlanta, May 18 – Petroleo Brasileiro SA's (Petrobras) wholly owned subsidiary, Petrobras Global Finance BV, released details on its $6.75 billion issue of five- and 10-year notes (expected ratings: B3/B+/BB).
The $5 billion 8 3/8% notes due in 2021 priced at 99.002 to yield 8 5/8%, or Treasuries plus 732.5 basis points, following talk in the 9% area.
The $1.75 billion 8¾% notes due in 2026 priced at 98.374 to yield 9%, or Treasuries plus 722.6 bps, 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.
Petrobras also is tendering for any and all of one series of notes and up to a purchase price of $6 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
|
| Call options: | Make-whole call at Treasuries plus 50 bps
|
| 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
|
| Coupon: | 8 3/8%
|
| Price: | 99.002
|
| Yield: | 8 5/8%
|
| Spread: | Treasuries plus 732.5 bps
|
| Price talk: | 9% area
|
|
|
| 2026 notes
|
| Amount: | $1.75 billion
|
| Maturity: | May 23, 2026
|
| Coupon: | 8¾%
|
| Price: | 98.374
|
| Yield: | 9%
|
| Spread: | Treasuries plus 722.6 bps
|
| Price talk: | 9¼% area
|
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