Bahrain’s Oil & Gas roadshows dollar deal; Petrobras bonds soften; PDVSA notes better bid

By Paul A. Harris

Portland, Ore., Oct. 12 – Bahrain’s Oil & Gas Holding Co. (//BB+) is on the road with a benchmark dollar-denominated offering of 10-year notes, according to a market source.

The deal is expected to be in the market through Tuesday.

The syndicate of banks leading the deal includes Citigroup, JPMorgan, BNP Paribas and HSBC.

The prospective issuer is 100% owned by the Kingdom of Bahrain.

Energy E&P names were generically off ¾ of a point on Thursday.

The move came with a substantial drop in oil prices which fell 1.3% on news that output gains in the United States are expected to offset efforts to rebalance the oil market.

Bonds of Petroleo Brasileiro SA (Petrobras) softened on the day, an investor said. Petrobras Global Finance BV 8 3/8% global notes due May 2021 were 115½ bid.

The Petrobras 8¾% global notes due May 2026 were 121 bid.

In high beta LatAm paper, news of Russian forbearance on Venezuelan debt has generated some improvement in the deeply distressed bonds of Petroleos de Venezuela SA, a market source said.

Near-term maturities have been up substantially since the news, the source added.

The PDVSA 8½% senior secured notes due October 2020 were half a point better, at 87 bid, on Thursday, the source said.

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