Petrobras Reveals Reopening Of Outstanding Series Of Global Notes, Cash Tender Offers Commencement

Petróleo Brasileiro S.A. Petrobras PBR revealed that its fully-owned unit Petrobras Global Finance B.V. ("PGF"), intends to offer additional notes of its 8.375% Global Notes due 2021 and 8.750% Global Notes due 2026 subject to market and other conditions.

According to Petrobras, the Notes would be unsecured obligations of PGF and would be fully and unconditionally guaranteed by the company. The company indicated that the additional 2021 Notes would be consolidated, form a single series, and be fully fungible with PGF's outstanding U.S.$5 billion aggregate principal amount of 2021 Notes issued on May 23.

The company said the additional 2026 Notes would also be consolidated, form a single series, and be fully fungible with PGF's outstanding U.S.$1.75 billion aggregate principal amount of 2026 Notes issued on May 23.

Petrobras said it plans to use the net proceeds from the sale of the Notes to buyback notes validly tendered and accepted for purchase by PGF in the tender offers and to use remaining net proceeds, if any, for general corporate purposes.

Following the news, the stock traded 5.29 percent up on Thursday.