Petrobras announces final results of 19-series tender offer

By Wendy Van Sickle

Columbus, Ohio, April 14 – Brazil’s Petroleo Brasileiro SA (Petrobras) announced final results of wholly owned subsidiary Petrobras Global Finance BV’s cash tender offers made April 5 for its outstanding notes from 19 series on Thursday, according to a company news release.

The final results of some series differed slightly from the expiration-date results announced on Tuesday.

Group one

Petrobras increased its offer to purchase notes in tender group one to $1,634,162,597.01 from $1 billion to be able to accept for purchase all of the notes tendered. They are listed in order of acceptance priority level with pricing per $1,000, €1,000 or £1,000 principal amount:

• All of the $58,159,000 notes tendered of $678,649,000 outstanding 6Ό% global notes due March 2024 (Cusip: 71647NAM1) for $1,056.16, set using the 2Ό% U.S. Treasury due March 31, 2024 and a fixed spread of 70 basis points;

• All of the €135,488,00 notes tendered of the €446,148,000 outstanding 4Ύ% global notes due January 2025 (ISIN: XS0982711714) for €1,068.34, set using the January 2025 interpolated swap rate and a fixed spread of 115 bps;

• All of the $77,659,000 amount tendered of the $809,711,000 outstanding 5.299% global notes due January 2025 (Cusips: 71647NAT6, 71647NAV1, N6945AAJ6) for $1,048.58, set using the 1Ύ% U.S. Treasury due March 15, 2025 and a fixed spread of 71 bps;

• All of the $101,804,000 notes tendered of the $548,009,000 outstanding 8Ύ% global notes due May 2026 (Cusip: 71647NAQ2) for $1,170.89, set using the 2½% U.S. Treasury due March 31, 2027 and a fixed spread of 139 bps;

• All of the £16,429,000 notes tendered of the £582,539,000 outstanding 6Ό% global notes due December 2026 (ISIN: XS0718502007) for £1,043.41, set using the 3/8% U.K. Treasury due Oct. 22, 2026 and a fixed spread of 352 bps;

• All of the $224,173,000 notes tendered of the $1,224,805,000 outstanding 7 3/8% global notes due January 2027 (Cusip: 71647NAS8) for $1,111.06, set using the 2½% U.S. Treasury due March 31, 2037 and a fixed spread of 195 bps;

• All of the $201,932,000 notes tendered of the $1,510,525,000 outstanding 5.999% global notes due January 2028 (Cusip: 71647NAW9, N6945AAK3, 71647NAY5) for $1,044.06, set using the 2½% U.S. Treasury due March 31, 2027 and a fixed spread of 232 bps;

• All of the $35,314,000 notes tendered of the $694,659,000 outstanding 5Ύ% global notes due February 2029 (Cusip: 71647NAZ2) for $1,026.52, set using the 1 7/8% U.S. Treasury due Feb. 15, 2032 and a fixed spread of 252 bps;

• All of the £10,633,000 notes tendered of the £356,598,000 outstanding 5 3/8% global notes due October 2029 (ISIN: XS0835891838) for £963.96, set using the 7/8% U.K. Treasury due Oct. 22, 2029 and a fixed spread of 427 bps; and,

• All of the $672,459,000 notes tendered of the $1,552,169,000 outstanding 5.093% global notes due January 2030 (Cusips: 71647NBE8, 71647NBF5, N6945AAL1) for $982.60, set using the 1 7/8% U.S. Treasury due Feb. 15, 2032 and a fixed spread of 261 bps.

Group two

In tender group two, Petrobras offered to purchase up to $1 billion of the following notes, listed in order of acceptance priority level:

• All of the $53,549,000 notes tendered of the $1,234,620,000 outstanding 5½% global notes due June 2051 (Cusip: 71647NBJ7) for $839.90 set using the 1 7/8% U.S. Treasury due Nov. 15, 2051 and a fixed spread of 395 bps;

• All of the $8,414,000 notes tendered of the $409,167,000 outstanding 5 5/8% global notes due May 2043 (Cusip: 71647NAA7) for $906.60, set using the 2 2/8% U.S. Treasury due Feb. 15, 2042 and a fixed spread of 345 bps;

• All of the $47,682,000 notes tendered of the $692,398,000 outstanding 6Ύ% global notes due June 2050 (Cusip: 71647NBG3) for $950.07, set using the 1 7/8% U.S. Treasury due Nov. 15, 2051 and a fixed spread of 435 bps;

• All of the $36,521,000 notes tendered of the $1,070,033,000 outstanding 6.9% global notes due March 2049 (Cusip: 71647NBD0) for $973.26, set using the 1 7/8% U.S. Treasury due Nov. 15, 2051 and a fixed spread of 431 bps;

• All of the $176,533,000 notes tendered of the $1,767,676,000 outstanding 5.6% global notes due January 2031 (Cusip: 71647NBH1) for $993.85, set using the 1 7/8% U.S. Treasury due Feb. 15, 2032 and a fixed spread of 293 bps;

• All of the £4,987,000 notes tendered of the £441,746,000 outstanding 6 5/8% global notes due January 2034 (ISIN: XS0982711474) for £997.06, set using the 4½% U.K. Treasury due Sept. 7, 2034 and a fixed spread of 470 bps;

• All of the $49,694,000 notes tendered of the $849,827,000 outstanding 6Ύ% global notes due January 2041 (Cusip: 71645WAS0) for $996.70, set using the 2 3/8% U.S. Treasury due Feb. 15, 2042 and a fixed spread of 379 bps;

• All of the $8,821,000 notes tendered of the $815,464,000 outstanding 6 7/8% global notes due January 2040 (Cusip: 71645WAQ4) for $1,010.62, set using the 2 3/8% U.S. Treasury due Feb. 15, 2042 and a fixed spread of 378 bps; and

• All of the $10,182,000 notes tendered of the 1,055,039,000 outstanding 7Ό% global notes due March 2044 (Cusip: 71647NAK5) for $1,019.83, set using the 2 3/8% U.S. Treasury due Feb. 15, 2042 and a fixed spread of 408 bps.

Details

Pricing was set at 11 a.m. ET on April 11.

The offers expired at 5 p.m. ET on April 11 and settled on April 14.

The guaranteed delivery date deadline was 5 p.m. ET on April 13.

BNP Paribas Securities Corp. (212 841-3059, 888 210-4358), Citigroup Global Markets Inc. (212 723-6106, 800 558-3745), HSBC Securities (USA) Inc. (212 710-6749, 888 HSBC-4LM), Mizuho Securities USA LLC (212 205-7736, 866 271-7403), Morgan Stanley & Co. LLC (212 761-1057, 800 624-1808) and Scotia Capital (USA) Inc. (212 225-5501, 833 498-1660) are the dealer managers for the offers.

Global Bondholder Services Corp. (855 654-2015, 212 430-3774, http://www.gbsc-usa.com/Petrobras/) is the depositary and information agent.

The energy company is based in Rio de Janeiro.

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