Petrobras’ $3 Billion Offerings and Concurrent Liability Management

Hogan Lovells, Cleary Gottlieb Steen & Hamilton and Shearman & Sterling advised on the deal.

Petróleo Brasileiro S.A. (Petrobras) executed a SEC-registered notes offering and concurrent liability management transaction.

The notes offering consisted of an offering of $750 million aggregate principal amount of 5.75% global notes due 2029 and $2.25 billion aggregate principal amount of 6.9% global notes due 2049. The notes were issued by Petrobras’ Dutch finance subsidiary, Petrobras Global Finance B.V. (PGF), are unconditionally and irrevocably guaranteed by Petrobras, and will be listed on the New York Stock Exchange. The offering priced on March 12, 2019, and closed on March 19, 2019.

PGF used the net proceeds from the notes offering to repurchase 10 different series of its outstanding notes pursuant to concurrent cash tender offers that launched on March 12, 2019. The tender offers consisted of a five-day any-and-all offer targeting one series of notes and conducted in accordance with SEC rules applicable to abbreviated tender offers, and a concurrent waterfall offer targeting nine series of notes and based on a cap of $4.5 billion minus the aggregate amount of cash used to fund the any-and-all offer.

The any-and-all offer expired on March 18, 2019, and settled on March 21, 2019. Petrobras repurchased approximately $1.5 billion principal amount of notes in the any-and-all offer. The waterfall offer had an early tender date of March 25, 2019, and early settled on March 27, 2019. Petrobras repurchased approximately $2.4 billion principal amount of notes in the early settlement of the waterfall offer. The waterfall offer will expire on April 8, 2019.

Hogan Lovells advised Petrobras Global Finance B.V. with Robert Masman, Anton Louwinger, Alexander Fortuin and Yvette Voermans.

Cleary Gottlieb Steen & Hamilton advised Petróleo Brasileiro S.A. (Petrobras) with Francesca L. Odell (Picture), David López, Nicolas Grabar, Scott Douglas Borisky, Manuel Silva, Andrea R. Lavourinha, Thomas Galvão Graham, David A. Maranjian, Hannah Littman, Stephanie Charles and Nina Peiter Carballido Mendes.

Shearman & Sterling advised Banco Bradesco BBI S.A., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Santander Investment Securities Inc., ABN AMRO Securities (USA) LLC, BBVA Securities Inc. and Commerz Markets LLC with Stuart K. Fleischmann, Roberta Berliner Cherman, Thomas Lemouche and Robert D. Giannattasio.

Involved fees earner: Scott Douglas Borisky – Cleary Gottlieb Steen & Hamilton; Thomas Galvão Graham – Cleary Gottlieb Steen & Hamilton; Nicolás Grabar – Cleary Gottlieb Steen & Hamilton; Andrea Lavourinha – Cleary Gottlieb Steen & Hamilton; Hannah Littman – 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; Alexander Fortuin – Hogan Lovells; Anton Louwinger – Hogan Lovells; Robert Masman – Hogan Lovells; Yvette Voermans – Hogan Lovells; Roberta Berliner Cherman – Shearman & Sterling; Stuart Fleischmann – Shearman & Sterling; Robert Giannattasio – Shearman & Sterling;

Law Firms: Cleary Gottlieb Steen & Hamilton; Hogan Lovells; Shearman & Sterling;

Clients: ABN AMRO; Banco Bradesco BBI S.A.; BBVA Securities Inc.; BNP Paribas Securities; Citigroup Global Markets Ltd; Commerz Markets LLC; Goldman Sachs & Co.; HSBC Securities; Petrobras; Petrobras Global Finance B.V.; Santander Investment Securities Inc.;

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Author: Ambrogio Visconti