Petrobras’ $3 Billion Liability Management

Cleary Gottlieb Steen & Hamilton, Shearman & Sterling and Pinheiro Neto advised on the transaction

Petróleo Brasileiro S.A. (Petrobras) executed its offers to purchase, for cash, 17 series of notes issued by Petrobras’ wholly owned Dutch finance subsidiary Petrobras Global Finance B.V., for an aggregate purchase price, excluding accrued and unpaid interest, of up to $3 billion.

The tender offer launched on July 1, 2019, and consisted of a five-day any-and-all offer targeting seven series of euro- and pound sterling-denominated notes and conducted in accordance with SEC rules applicable to abbreviated tender offers, and a concurrent waterfall offer targeting 10 series of U.S dollar-denominated notes and based on a cap of $3 billion minus the aggregate amount of cash used to fund the any-and-all offer.

The any-and-all offer expired on July 8, 2019, and settled on July 11, 2019. The waterfall offer had an early tender date of July 15, 2019, and early settled on July 17, 2019. The waterfall offer expired on July 29, 2019, and final settled on July 31, 2019. Petrobras repurchased approximately $640 million principal amount of notes in the any-and-all offer and approximately $1.94 billion in the waterfall offer.

Banco Bradesco BBI S.A., BB Securities, BofA Securities, Credit Suisse Securities (USA), J.P. Morgan Securities and Scotia Capital (USA), acted as deal managers on the transaction.

Cleary Gottlieb Steen & Hamilton advised Petróleo Brasileiro S.A. (Petrobras) with David Lopez (Picture), Francesca Odell, Manuel Silva, Andrea R. Lavourinha, Thomas Galvão Graham, Stephanie Charles, David A. Maranjian and David Stewart Fisher.

Shearman & Sterling advised Banco Bradesco BBI S.A., BB Securities Limited, BofA Securities, Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. with Stuart K. Fleischmann, Flavio Averbug. and Mariana Pacini.

Pinheiro Neto advised Banco Bradesco BBI S.A., BB Securities Limited, BofA Securities, Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. with Ricardo Simões Russo, Marcos Saldanha Proença, Vittoria Cervantes de Simoni and Gustavo Guedes Araújo.

Involved fees earner: Stephanie Charles – Cleary Gottlieb Steen & Hamilton; Thomas Galvão Graham – Cleary Gottlieb Steen & Hamilton; Andrea Lavourinha – Cleary Gottlieb Steen & Hamilton; David Lopez – Cleary Gottlieb Steen & Hamilton; David Maranjian – Cleary Gottlieb Steen & Hamilton; Francesca Odell – Cleary Gottlieb Steen & Hamilton; Manuel Silva – Cleary Gottlieb Steen & Hamilton; David Stewart Fisher – Cleary Gottlieb Steen & Hamilton; Vittoria Cervantes de Simoni  – Pinheiro Neto; Ricardo Simões Russo – Pinheiro Neto; Marcos Saldanha Proenca – Pinheiro Neto; Flavio Averbug – Shearman & Sterling; Stuart Fleischmann – Shearman & Sterling; Mariana Pacini – Shearman & Sterling;

Law Firms: Cleary Gottlieb Steen & Hamilton; Pinheiro Neto; Shearman & Sterling;

Clients: Banco Bradesco BBI S.A.; Bank of America Securities; BB Securities Ltd; Credit Suisse Securities (USA) LLC; JP Morgan Securities; Petrobras; Scotia Capital Inc.;