PDVSA to Buy Back Project Debt

Venezuela’s PDVSA has reached a lock-up agreement with bondholders to buy back 77.23% of the $756m in outstanding debt from the Petrozuata heavy oil project. The deal covers Petrozuata’s 7.63% of 2009 series A, 8.22% of 2017 series B, and 8.37% of 2022 series C bonds. In a tender offer to be launched within 90 days, the state oil company will pay a purchase price equal to par plus accrued and unpaid interest, and 33% of the redemption premium specified in the original bond issue, plus a consent fee of 0.25% on the principal amount. PDVSA also said it repaid the project’s $160.7m bank loan at the beginning of the month. Petrozuata was nationalized last year.