Finance Watch -- WSJ
May 19 2016 - 3:02AM
Dow Jones News
CREDIT MARKETS
Petrobras Bonds Raise $6.75 Billion
Brazilian state-run oil company Petróleo Brasileiro SA, or
Petrobras, raised a total $6.75 billion from an overseas bond
issue, but it was obligated to pay a high yield to investors, due
to its elevated debt.
The company issued its bonds via two tranches. The first, worth
$5 billion, is due in May 2021 and will pay an annual yield of
8.625%. The second tranche, totaling $1.75 billion, will pay a
yield of 9% and mature in May 2026. In June 2015, by comparison,
Petrobras raised $2.5 billion, via a 100-year bond issue, with an
annual yield of 8.45%.
In previous years, Petrobras has tapped U.S. and European debt
markets for tens of billions of dollars, paying investors interest
rates that often fell below 5%.
--Rogerio Jelmayer
M&A ACTIVITY
Hartford Funds to Buy ETF Operator
Hartford Funds agreed to acquire exchange-traded funds operator
Lattice Strategies, another response by a traditional mutual-fund
company to investors' push into passively managed funds such as
ETFs.
Hartford Funds declined to divulge the value of the deal, which
it expects to close in the third quarter, but said the acquisition
won't have a material impact on the financial results of its
parent, Hartford Financial Services Group Inc.
The acquisition of San Francisco-based Lattice, with $215
million in assets, would mark the first foray into ETFs by Hartford
Funds, of Radnor, Pa. The fund group now offers 45 actively managed
mutual funds, which are primarily subadvised by Wellington
Management.
Lattice offers four "multifactor strategic beta" ETFs., which
blur the lines between active and passive management by using
metrics other than market capitalization when buying stocks, such
as a company's dividends, book value or volatility.
--Daisy Maxey
(END) Dow Jones Newswires
May 19, 2016 02:47 ET (06:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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