By Rebecca Melvin
New York, March 13 – Petrobras Global Finance BV, a subsidiary or Brazil’s Petroleo Brasileiro SA (Petrobras), priced $3 billion of notes, including a $2.25 billion issue of 6.9% notes due 2049 and a $750 million add-on to its existing 5¾% global notes due 2029 (BB-/B-), according to a company news release on Wednesday.
The $2.25 billion of 6.9% notes priced at par. Pricing was tight to initial price talk for a yield in the low 7% area.
The $750 million add-on to the 5¾% notes due Feb. 1, 2029 priced at 98.515 to yield 5.95%. That pricing was at the tight end of price talk in the area of 6.05%.
The 5¾% notes will be added to $1.9 billion of the notes issued on Feb. 1, 2018.
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 notes.
The proceeds of the new notes will be used to repurchase notes in a tender offer and for general corporate purposes.
The energy company is based in Rio de Janeiro.
| Issuer: | Petrobras Global Finance BV
|
| Guarantor: | Petroleo Brasileiro SA
|
| Amount: | $3 billion
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| Description: | Global notes
|
| Bookrunners: | 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
|
| Co-managers: | ABN Amro Securities (USA) LLC, BBVA Securities Inc. and Commerz Markets LLC
|
| Pricing date: | March 12
|
| Settlement date: | March 19
|
| Ratings: | S&P: BB-
|
| Fitch: B-
|
|
|
| 2049 notes
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| Amount: | $2.25 billion
|
| Maturity: | March 19, 2049
|
| Coupon: | 6.9%
|
| Price: | Par
|
| Yield: | 6.9%
|
| Price talk: | Low 7% area
|
|
|
| Add-on to 2029 notes
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| Amount: | $750 million
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| Maturity: | Feb. 1, 2029
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| Coupon: | 5¾%
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| Price: | 98.515
|
| Yield to maturity: | 5.95%
|
| Price talk: | 6.05% area
|
| Original issue: | $1.9 billion issued on Feb. 1, 2018
|
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