Brazil’s Petrobras talks up to $2 billion of notes in two tranches

By Rebecca Melvin

New York, Sept. 18 – Brazil’s Petroleo Brasiliero SA (Petrobras) plans to price up to $2 billion of new notes in two tranches, including about $1 billion of seven-year notes that were talked to yield 5½% to 6% and about $1 billion of 10-year notes that were talked in the low 6% range, according to market source.

The notes due January 2025 and January 2028 (expected ratings: (/BB-/BB) are being sold concurrently with two exchange offers for existing notes. Petrobras is also conducting cash offers for five series of notes, according to a company news release.

The new notes are expected to have identical terms to the new notes issued in connection with tender exchange offers that expire on Sept. 22.

The new notes are issued by Petrobras subsidiary Petrobras Global Finance BV under Rule 144A and Regulation S. Bookrunners are BofA Merrill Lynch, BB Securities, Citigroup, Credit Agricole, HSBC, JPMorgan and Santander.

Proceeds will be used for general corporate purposes, including to refinance upcoming maturities.

Petrobras is an energy company based in Rio de Janeiro.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.