Petrobras Issues $4 Billion in Bond Offerings

January 17, 2017

Cleary Gottlieb represented long-standing client Petróleo Brasileiro S.A. (Petrobras) in its SEC-registered offering of $2 billion aggregate principal amount of 6.125 percent global notes due 2022 and $2 billion aggregate principal amount of 7.375 percent global notes due 2027.

The notes were issued by Petrobras’ Dutch finance subsidiary, Petrobras Global Finance B.V. (PGF), and are unconditionally and irrevocably guaranteed by Petrobras. The notes are expected to be listed on the New York Stock Exchange. The offerings priced on January 9, 2017, and closed on January 17, 2017.

PGF will use up to approximately $3.98 billion of the proceeds of the notes offering to repurchase seven different series of its outstanding notes pursuant to a concurrent cash tender offer that launched on January 9, 2017. The tender offer includes a waterfall feature giving priority to the repurchase of certain series of notes over others. The tender offer has an early tender date of January 23, 2017, and is expected to expire on February 6, 2017. The firm is also representing Petrobras and PGF in the liability management transaction.

Cleary has previously represented Petrobras in significant SEC reporting, corporate governance, financing and litigation matters.