Petrobras Borrowing $11 Billion by Selling Bonds

Brazilian energy major Petrobras (NYSE: PBR  ) is bulking up with a series of large-scale bond issues. The company said this week it aims to raise roughly $11 billion in a set of six flotations, to be issued by its subsidiary Petrobras Global Finance.

In detail, these are:

  • 2% fixed rate notes, maturity May 2016, total amount $1.25 billion, issue price 99.584%.
  • Floating rate notes (three-month USD LIBOR + 162 basis points), maturity May 2016, total amount $1.0 billion.
  • 3% fixed rate notes, maturity January 2019, total amount $2.0 billion, issue price 99.352%.
  • Floating rate notes (three-month USD LIBOR + 214 basis points), maturity January 2019, total amount $1.5 billion.
  • 4.375% fixed rate notes, maturity May 2023, total amount $3.5 billion, issue price 98.828%.
  • 5.625% fixed rate notes, maturity May 2043, total amount $1.75 billion, issue price 98.027%.

Petrobras said the proceeds will be used to fund the company's 2013-2017 business plan, and for general corporate purposes. It expects the offering to close on May 20.

The joint book-running syndicate for the issue includes Citigroup's Global Markets unit, JPMorgan Chase's J.P. Morgan Securities, and Bank of America subsidiary Merrill Lynch, Pierce, Fenner & Smith.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2429231, ~/Articles/ArticleHandler.aspx, 10/23/2014 7:18:04 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement