Brazil’s Petrobras launches $2.25 billion new 2049 notes, $750 million add-on to 5¾% notes due 2029

By Rebecca Melvin

New York, March 12 – Petrobras Global Finance BV, a subsidiary or Brazil’s Petroleo Brasileiro SA (Petrobras), launched $2.25 billion of new 2049 notes to yield 6.9% and a $750 million tap of its 5¾% global notes due 2029 to yield 5.95%, according to a market source. Final pricing was expected late Tuesday.

Pricing was tight to initial talk for the 2049 notes for a yield in the low 7% area and the 2029 notes for a yield in the area of 6.05%.

The 5¾% notes will be added to the existing $1.9 billion of the notes issued on Feb. 1, 2018.

Petrobras is also making cash tender offers to repurchase several outstanding dollar- and euro-denominated notes due 2021 through 2025.

BNP Paribas Securities Corp., Banco Bradesco BBI SA, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Santander Investment Securities Inc. are acting as joint bookrunners for the new notes (expected ratings: BB-/B-) and as lead dealer managers with respect to the tender offers, and ABN Amro Securities (USA) LLC, BBVA Securities Inc. and Commerz Markets LLC are acting as co-managers with respect to the new notes and as co-dealer managers for the tenders.

The proceeds of the new notes will be used to repurchase the tendered notes and for general corporate purposes.

The energy company is based in Rio de Janeiro.

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