Petrobras in $3.0 Billion Reopening of Bonds and Concurrent Liability Management Transaction
July 13, 2016
Cleary Gottlieb represented long-standing client Petróleo Brasileiro S.A. in its SEC-registered reopening of $1.75 billion principal amount of its 8.375 percent global notes due 2021, and $1.25 billion principal amount of its 8.750 percent global notes due 2026.
The notes were issued by Petrobras’s Dutch finance subsidiary, Petrobras Global Finance B.V., and are unconditionally and irrevocably guaranteed by Petrobras. The notes are listed on the New York Stock Exchange. The offerings priced on July 7 and closed on July 13.
PGF used the proceeds of the notes offering to repurchase ten different series of its outstanding notes pursuant to a concurrent cash tender offer that launched on July 7. The tender offer included a waterfall feature giving priority to the repurchase of certain series of notes over others. The tender offer had an early tender date of July 20 and expiration date of August 3. Cleary also represented Petrobras and PGF in the liability management transaction.
The firm has been representing Petrobras for many years in significant SEC reporting, corporate governance, financing and litigation matters. The total amount of funds raised by Petrobras in the initial offering of notes completed in May 2016 and this reopening was $9.75 billion.