Financial

Petrobras announces the Pricing of Reopening of Outstanding Series of Global Notes

Rio de Janeiro, Brazil – May 15, 2017 – Petróleo Brasileiro S.A. – Petróleo Brasileiro S.A. – Petrobras announces the pricing of additional notes of its 6.125% Global Notes due 2022 (CUSIP No. 71647N AR0 / ISIN No. US71647NAR08) (the “2022 Notes”), 7.375% Global Notes due 2027 (CUSIP No. 71647N AS8 / ISIN No. US71647NAS80) (the “2027 Notes”) and 7.250% Global Notes due 2044 (CUSIP No. 71647N AK5 / ISIN No. US71647NAK54) (“the 2044 Notes” and, collectively with the 2022 Notes and the 2027 Notes, the “Notes”) to be issued by its wholly-owned subsidiary Petrobras Global Finance B.V. (“PGF”).
The Notes will be unsecured obligations of PGF and will be fully and unconditionally guaranteed by Petrobras. The additional 2022 Notes will be consolidated, form a single series, and be fully fungible with, PGF’s outstanding U.S.$2,000,000,000 aggregate principal amount of 2022 Notes issued on January 17, 2017. The additional 2027 Notes will be consolidated, form a single series, and be fully fungible with, PGF’s outstanding U.S.$2,000,000,000 aggregate principal amount of 2027 Notes issued on January 17, 2017. The additional 2044 Notes will be consolidated, form a single series, and be fully fungible with, PGF’s outstanding U.S.$1,000,000,000 aggregate principal amount of 2044 Notes issued on March 17, 2014. Closing is expected to occur on May 22, 2017.
The terms of the additional 2022 Notes are as follows:

•         Issue: 6.125% Global Notes due 2022
•         Reopening Principal Amount: US$1,000,000,000 (total amount outstanding for the series: U.S.$3,000,000,000)
•         Coupon: 6.125%
•         Interest Payment Dates: January 17 and July 17 of each year, commencing on July 17, 2017
•         Reopening price: 105.140% of principal amount, plus accrued interest from January 17, 2017
•         Yield to Investors: 4.875%
•         Maturity: January 17, 2022

The terms of the additional 2027 Notes are as follows:

•         Issue: 7.375% Global Notes due 2027
•         Reopening Principal Amount: US$2,000,000,000 (total amount outstanding for the series: U.S.$4,000,000,000)
•         Coupon: 7.375%
•         Interest Payment Dates: January 17 and July 17 of each year, commencing on July 17, 2017
•         Reopening price: 109.954% of principal amount, plus accrued interest from January 17, 2017
•         Yield to Investors: 6.000%
•         Maturity: January 17, 2027

The terms of the additional 2044 Notes are as follows:

•         Issue: 7.250% Global Notes due 2044
•         Reopening Principal Amount: US$1,000,000,000 (total amount outstanding for the series: U.S.$2,000,000,000)
•         Coupon: 7.250%
•         Interest Payment Dates: March 17 and September 17 of each year, commencing on September 17, 2017
•         Reopening price: 102.993% of principal amount, plus accrued interest from March 17, 2017
•         Yield to Investors: 7.000%
•         Maturity: March 17, 2044

PGF intends to use the net proceeds from the sale of the Notes towards the redemption price of its existing 2.750% Global Notes due January 2018, 5.875% Global Notes due March 2018 and 4.875% Global Notes due March 2018, to repay other existing indebtedness and the remainder, if any, for general corporate purposes. PGF intends to issue a notice of redemption following the closing of the offering and to redeem the aggregate principal amount of these notes no less than 30 days and not more than 60 days thereafter.
This press release is neither an offer to sell nor a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Categories: Financial, Petrobras

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s