By Rebecca Melvin
New York, Jan. 26 – Petrobras Global Finance BV, a subsidiary of Brazil’s Petroleo Brasileiro SA (Petrobras), priced $2 billion of 5¾% 11-year notes (expected ratings: Ba3/BB-/BB) at 98.402 on Thursday to yield 5.95%, according to a market source.
The notes had been talked initially to yield in the low to mid 6% range.
Banco Bradesco BBI SA, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Itau BBA USA Securities, Inc. and Mizuho Securities USA LLC were bookrunners for the Securities and Exchange Commission-registered deal.
Proceeds are earmarked for the redemption of its existing 3% global notes due January 2019, 7 7/8% global notes due March 2019 and 3¼% global notes due April 2019, with the remainder to repay other existing debt and for general corporate purposes.
The energy company is based in Rio de Janeiro.
| Issuer: | Petrobras Global Finance BV
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Maturity: | Feb. 1, 2029
|
| Description: | Notes
|
| Bookrunners: | Banco Bradesco BBI SA, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Itau BBA USA Securities, Inc. and Mizuho Securities USA LLC
|
| Coupon: | 5¾%
|
| Price: | 98.402
|
| Yield: | 5.95%
|
| Make-whole call: | Treasuries plus 50 bps
|
| Trade date: | Jan. 25
|
| Settlement date: | Feb. 1
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB-
|
| Fitch: BB
|
| Distribution: | SEC registered
|
| Price talk: | Low to mid 6% range
|
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