Petrobras Bonds Drop on Report Company Seeking Extended Deadline
12:23 PM BRT
March 13, 2015
(Bloomberg) — Bonds and stocks of Petroleo Brasileiro SA fell after a newspaper reported that the company is in talks with creditors to extend a deadline for publishing audited results and avoid a possible acceleration of payments.
Petrobras’s $2.5 billion in bonds due 2024 declined 2.7 cents to 90.55 cents per dollar, the biggest daily drop since Jan. 30. Yields on the notes jumped 0.45 percentage point to 7.74 percent. The preferred shares of the company at the center of the nation’s biggest corruption probe slid 2.5 percent to 8.29 reais, extending this week’s slump to 10 percent.
The Rio de Janeiro-based oil driller has held negotiations with about 15 banks and investment firms in the past few weeks to extend the deadline, Folha de S.Paulo reported, citing people at the company and lenders involved in the discussions. Petrobras said in an e-mailed statement that it isn’t considering a delay in the release of its results.
“Any sign Petrobras might delay even more the announcement of the results brings more pessimism to investors,” Klaus Spielkamp, the head of fixed-income sales at Bulltick LLC in Miami, said in a telephone interview. “The impression I have is that we won’t see those results any time soon.”
Petrobras is trying to develop a way to recognize corruption losses that satisfies its auditor and regulators before a deadline at the end of May with creditors to release financial results. While the company still expects to meet that deadline, it’s seeking a pact with creditors as a precaution, Folha said.
“It prompts the question of the accuracy of all their accounting,” Jorge Piedrahita, the chief executive officer of Torino Capital Markets in New York, said in an e-mailed response to questions.