Petrobras in $4 Billion SEC-Registered Multi-Tranche Notes Offering

October 20, 2009

Cleary Gottlieb served as United States counsel to Petróleo Brasileiro S.A.--Petrobras in a $4 billion offering of SEC-registered 10-year and 30-year notes issued by Petrobras’ finance subsidiary, Petrobras International Finance Company (PifCo). The proceeds of this multi-tranche offering will be used to repay the $3.168 billion outstanding under a bridge loan facility between PifCo and various international banks, and for general corporate purposes including financing Petrobras’ planned capital expenditures. According to media reports, this was Brazil’s largest bond issue since a 2000 issuance of sovereign debt, and the largest-ever bond issue for a Brazilian company.

The notes are unconditionally and irrevocably guaranteed by Petrobras, and the terms of the notes are as follows:

  • $2.5 billion of PifCo’s 5.75% Global Notes due 2020
  • $1.5 billion of PifCo’s 6.875% Global Notes due 2040

Settlement occurred on October 30. PifCo intends to apply to have the 10- and 30-year notes listed on the New York Stock Exchange.