Petrobras announces reopening of Global Notes due 2019

Friday, Jul 03, 2009

PETROBRAS announces that its wholly owned subsidiary PETROBRAS INTERNATIONAL FINANCE COMPANY (PifCo), announced today the reopening of its 7.875% Global Notes due March 15, 2019, which will add US$ 1.25 billion to the US$ 1.5 billion originally issued on February 11, 2009, at a yield to investor of 8.125%. The reopening notes will be fully fungible with the original issue. Pricing also occurred today, and the following terms of the reopening have been determined:

Amount: US$ 1.25 billion

Coupon: 7.875%

Price: 106.962

Yield to Investors: 6.875%

Maturity: March 15, 2019

Ratings: Baa1 (Moodys); BBB - (S&P); BBB (Fitch) Citi, HSBC, JP Morgan and Santander were the bookrunners for the transaction and Banco do Brasil and Societe Generale were the co-managers. Closing is expected to occur on July 9, 2009.

Including this reopening, Petrobras will have raised a total of US$ 2.75 billion in the international capital markets in 2009. In accordance with the 2009-2013 Business Plan, Petrobras will use these funds to repay the bridge loans incurred at the beginning of this year.

Source: Petrobras