By Colin Hanner
Chicago, May 16 – Petroleo Brasileiro SA – Petrobras sold $4 billion in combined add-ons to its 6 1/8% notes due 2022, 7 3/8% notes due 2027 and 7¼% notes due 2044 on Monday, the company said in three FWP filings with the Securities and Exchange Commission.
The largest of the add-ons was $2 billion of 7 3/8% notes due Jan. 17, 2027, which priced at 109.954 to yield 6%. Petrobras originally issued $2 billion of the notes in January 2017, and the total amount is now $4 billion.
The company priced $1 billion more 6 1/8% notes due Jan. 17, 2022 at 105.14 to yield 4 7/8%, lifting the total amount of the issue to $3 billion. Petrobras issued $2 billion of the notes in January 2017.
The issuer also sold another $1 billion of 7¼% notes due March 17, 2044. The add-on priced at 102.993 to yield 7%. Petrobras originally issued $1 billion of the notes on March 17, 2014, and the total amount is now $2 billion.
All three tranches were sold via wholly owned subsidiary Petrobras Global Finance BV.
Proceeds from the notes will go toward redeeming existing 2¾% notes due 2018, 5 7/8% notes due 2018 and 4 7/8% notes due 2018, as well as to pay down other existing debt and for general corporate purposes.
BB Securities Ltd., Banco Bradesco BBI SA, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Itau BBA USA Securities, Inc. and Morgan Stanley & Co. LLC were joint bookrunners for the deal.
Petrobras is an energy company based in Rio de Janeiro.
| Issuer: | Petrobras Global Finance BV
|
| Guarantor: | Petroleo Brasileiro SA – Petrobras
|
| Amount: | $4 billion
|
| Description: | Senior notes
|
| Bookrunners: | BB Securities Ltd., Banco Bradesco BBI SA, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Itau BBA USA Securities, Inc. and Morgan Stanley & Co. LLC
|
| Trade date: | May 15
|
| Settlement date: | May 22
|
| Rating: | Fitch: BB
|
| Distribution: | SEC registered
|
|
|
| Notes due 2022
|
| Amount: | $1 billion
|
| Proceeds: | $1,051,400,000
|
| Maturity: | Jan. 17, 2022
|
| Coupon: | 6 1/8%
|
| Price: | 105.14
|
| Yield: | 4 7/8%
|
| Make-whole call: | Treasuries plus 50 bps
|
| Cusip: | 71647NAR0
|
| Original issue: | $2 billion issued on Jan. 17, 2017
|
| Total amount: | $3 billion
|
|
|
| Notes due 2027
|
| Amount: | $2 billion
|
| Proceeds: | $2,199,080,000
|
| Maturity: | Jan. 17, 2027
|
| Coupon: | 7 3/8%
|
| Price: | 109.954
|
| Yield: | 6%
|
| Make-whole call: | Treasuries plus 50 bps
|
| Cusip: | 71647NAS8
|
| Original issue: | $2 billion issued Jan. 17, 2017
|
| Total amount: | $4 billion
|
|
|
| Notes due 2044
|
| Amount: | $1 billion
|
| Proceeds: | $1,029,930,000
|
| Maturity: | March 17, 2044
|
| Coupon: | 7¼%
|
| Price: | 102.993
|
| Yield: | 7%
|
| Make-whole call: | Treasuries plus 50 bps
|
| Cusip: | 71647NAK5
|
| Original amount: | $1 billion issued on March 17, 2014
|
| Total amount: | $2 billion
|
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