RIO DE JANEIRO, July 7, 2016 /PRNewswire/ -- Petróleo
Brasileiro S.A. – Petrobras ("Petrobras") (NYSE: PBR) announces the
pricing of additional notes of its 8.375% Global Notes due 2021
(CUSIP No. 71647N AP4 / ISIN No. US71647NAP42) (the "2021 Notes")
and 8.750% Global Notes due 2026 (CUSIP No. 71647N AQ2 / ISIN No.
US71647NAQ25) (the "2026 Notes" and, collectively with the 2021
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 2021 Notes will be consolidated, form
a single series, and be fully fungible with PGF's outstanding
U.S.$5,000,000,000 aggregate
principal amount of 2021 Notes issued on May
23, 2016. The additional 2026 Notes will be
consolidated, form a single series, and be fully fungible with
PGF's outstanding U.S.$1,750,000,000
aggregate principal amount of 2026 Notes issued on May 23, 2016. Closing is expected to occur
on July 13, 2016.
The terms of the additional 2021 Notes are as follows:
- Issue: 8.375% Global Notes due 2021
- Amount: US$1,750,000,000 (total
amount outstanding for the series: US$6,750,000,000)
- Coupon: 8.375%
- Interest Payment Dates: May 23
and November 23 of each year,
commencing on November 23, 2016
- Issue price: 101.971% of principal amount, plus accrued
interest from May 23, 2016
- Yield to Investors: 7.875%
- Maturity: May 23, 2021
The terms of the additional 2026 Notes are as follows:
- Issue: 8.750% Global Notes due 2026
- Amount: US$1,250,000,000 (total
amount outstanding for the series: US$3,000,000,000)
- Coupon: 8.750%
- Interest Payment Dates: May 23
and November 23 of each year,
commencing on November 23, 2016
- Issue price: 99.981% of principal amount, plus accrued interest
from May 23, 2016
- Yield to Investors: 8.750%
- Maturity: May 23, 2026
PGF intends to use the net proceeds from the sale of the Notes
to repurchase notes validly tendered and accepted for purchase by
PGF in the previously announced cash tender offers (the "Tender
Offers"), and to use any remaining net proceeds for general
corporate purposes.
In connection with the Tender Offers, PGF announces that is has
increased the tender cap from US$2.0
billion to US$3.0 billion.
Except as described in this press release, all other terms of the
Tender Offers as described in the offer to purchase dated
July 7, 2016 (as may be amended or
supplemented from time to time, the "Offer to Purchase"), and in
the related letter of transmittal dated July
7, 2016 (as may be amended or supplemented from time to
time, the "Letter of Transmittal") remain unchanged.
PGF has engaged BB Securities Limited, J.P. Morgan Securities
LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and
Santander Investment Securities Inc. to act as dealer managers (the
"Dealer Managers") in connection with the Tender Offers.
Global Bondholder Services Corporation is acting as the depositary
and information agent for the Tender Offers.
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. The Tender Offers are not being made to
holders of notes in any jurisdiction in which PGF is aware that the
making of the Tender Offers would not be in compliance with the
laws of such jurisdiction. In any jurisdiction in which the
securities laws or blue sky laws require the Tender Offers to be
made by a licensed broker or dealer, the respective Tender Offers
will be deemed to be made on PGF's behalf by the Dealer Managers or
one or more registered brokers or dealers that are licensed under
the laws of such jurisdiction. Any questions or requests for
assistance regarding the Tender Offers may be directed to BB
Securities Limited at +(44) 207 367 5832, J.P. Morgan Securities
LLC at +1 (866) 846-2874 (toll free) or +1 (212) 834-7279
(collect), Merrill Lynch, Pierce, Fenner & Smith Incorporated
at +1 (888) 292-0700 (toll-free) or +1 (646) 855-8988 (collect) or
Santander Investment Securities Inc. at +1 (855) 404-3636
(toll-free) or +1 (212) 940-1442 (collect). Requests for additional
copies of the Offer to Purchase, the Letter of Transmittal and
related documents may be directed to Global Bondholder Services
Corporation at +1 (866)-470-3900 (toll-free).
Neither the Offer to Purchase, the Letter of Transmittal nor any
documents related to the Tender Offers have been filed with, and
have not been approved or reviewed by any federal or state
securities commission or regulatory authority of any country.
No authority has passed upon the accuracy or adequacy of the
Offer to Purchase or any documents related to the Tender Offers,
and it is unlawful and may be a criminal offense to make any
representation to the contrary.
Forward-Looking Statements
This press release may
contain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended that are not based
on historical facts and are not assurances of future results.
No assurance can be given that the transactions described herein
will be consummated or as to the ultimate terms of any such
transactions. All forward-looking statements are expressly
qualified in their entirety by this cautionary statement, and you
should not place reliance on any forward-looking statement
contained in this press release. Petrobras undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information or future events
or for any other reason.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/petrobras-announces-the-pricing-of-reopening-of-outstanding-series-of-global-notes-and-increase-of-tender-cap-300295771.html
SOURCE Petróleo Brasileiro S.A.-Petrobras