Petrobras Amends Terms of Global Notes Due 2018, Hikes Consideration Offer

Petróleo Brasileiro S.A.

revealed that its fully-owned subsidiary Petrobras Global Finance B.V. is amending the terms of its earlier announced offer to acquire all of PGF's 8.375% Global Notes due 2018 for cash. The company also sought the related solicitation of consents from the holders of 2018 Notes to eliminate some covenants and related provisions in the indenture pursuant to which the 2018 Notes were issued and to the execution and delivery of a supplement to the 2018 Notes. Petrobras said that the previously announced expiration date for the Offer to buy and Consent Solicitation was extended to July 8, 2016 (the "New Expiration Date"). The company also boosted the total consideration. Accordingly, the earlier disclosed total consideration for each US$1,000 principal amount of 2018 Notes payable to holders of 2018 Notes were increased to US$1,115 from US$1,100 . The company added that all holders, including those who previously tendered, who tender 2018 Notes before the New Expiration Date would become eligible to get the same total consideration, and to get accrued and unpaid interest on the 2018 Notes accepted. In the pre-market trading on Friday, the stock traded 7.49 percent down.