Petrobras has outlined its latest bond sale, launching
initial price talk (IPT) on fresh five-year and ten-year debt.
Brazil’s state-owned energy company has also launched a
tender offer to buy back debt on its 3% 2019 bonds, its floating-rate 2019s and
7.875% 2019s. In addition, Petrobras is targeting its 5.75% 2020s, 4.875% 2020s
and 2020 FRNs.
The company’s 3% 2019s tightened two points upon the announcement
of the tender to 100.125, or a yield of 2.935%, according to debt capital
markets sources. Its 7.875% 2019s were offering 109 cents to the dollar, or a
yield of 3.14%, one source added.
Its 5.75% 2020s were seen at 104.125 on Monday morning,
coming in some two points and offering investors yield of 4.28%.
Bookrunners Bradesco, Citi, HSBC, Itau BBA and Morgan
Stanley set IPTs at on a new five-year bond at 6.5% and offered 7.75% on
fresh 2027 paper.
If tendered before the early deadline of January 23, holders
of the 3% 2019s will receive a 1,006.25 for every $976.25 tendered, while those
holding Petrobras’ 2019 FRNs receive a $30 premium for every $986.25 tendered. Holders
of the 7.875% 2019s get $1,105 for every $1,075 tendered by January 23.
Noteholders with 5.75% 2020 paper get $1,048.75 for every
$1,018.75, those with 4.875% 2020s get $1,027.5 for their $997.5
tendered and 2020 FRN holders get $1,016.25 for every $986.25.
Petrobras is also
looking to buy back its 3.25% 2019 euro notes at €1,051.25 for every €1,021.25 tendered before the early deadline date, the company said in a statement. It has €1.3bn in outstanding euro-denominated 2019s.
The company has roughly $1.45bn outstanding in 3% 2019s, $750.5m in 2019 FRNs, $1.814bn in 7.875% 2019s, $2.5bn in 5.75% 2020s, $1.5bn in 4.875% 2020s and $500m in 2020 FRNs.