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HG bonds: Petrobras inks curve-spanning $11B bond sale; terms

Petroleo Brasileiro, or Petrobras, late yesterday completed an $11 billion, six-part offering at levels in line with price talk. The deal was inked on the firm side of guidance, and 10-25 bps through initial whisper numbers.

Proceeds will be used finance Petrobras’ planned capital expenditures under its 2013-2017 business plan and for general corporate purposes.

Petrobras’ new debt was inked at levels below its last taps of those tenors. In February 2012, the Rio de Janeiro-based, oil and natural gas company placed $7 billion in four tranches, including 2.875% 2015 notes at T+275, or 3.05%; 3.5% 2017 notes at T+290, or 3.63%; 5.375% January 2021 notes at T+295, or 5.04%; and 6.75% January 2042 notes at T+295, or 6.81%.

Yesterday’s deal still falls short of Apple Inc.’s $17 billion, six-tranche deal – which is the largest ever corporate-bond offering – completed April 30. In February 2012, Petrobras placed a $7 billion, U.S.-dollar-denominated sale across four tranches, which at the time was tied in size with SABMiller’s $7 billion, four-part offering placed in January 2012 as the largest deal of last year. Then in November, AbbVie placed 2012’s biggest offering, a $14.7 billion issue across six tranches to fund its spin-off from Abbott Laboratories. Terms:

Issuer Petrobras Global Finance B.V.
Ratings BBB/A3
Amount $1 billion
Issue SEC-registered senior notes
Coupon  L+162
Price 100
Maturity May 20, 2016
Trade May 13, 2013
Settle May 20, 2013
Books BAML/ITAU
Px Talk L+162; guidance LIBOR equivalent; IPT L+195 area
Notes Guaranteed by Petroleo Brasileiro
Issuer Petrobras Global Finance B.V.
Ratings BBB/A3
Amount $1.5 billion
Issue SEC-registered senior notes
Coupon L+214
Price 100
Maturity January 15, 2019
Trade May 13, 2013
Settle May 20, 2013
Books MS/BB
Px Talk L+214; guidance LIBOR equivalent; IPT L+235 area
Notes Guaranteed by Petroleo Brasileiro
Issuer Petrobras Global Finance B.V.
Ratings BBB/A3
Amount $1.25 billion
Issue SEC-registered senior notes
Coupon 2%
Price 99.584
Yield 2.144%
Spread T+175
Maturity May 20, 2016
Call make-whole T+25
Trade May 13, 2013
Settle May 20, 2013
Books BB/JPM
Px Talk T+175; guidance T+180 area; IPT T+205 area
Notes Guaranteed by Petroleo Brasileiro
Issuer Petrobras Global Finance B.V.
Ratings BBB/A3
Amount $2 billion
Issue SEC-registered senior notes
Coupon 3%
Price 99.352
Yield 3.125%
Spread T+230
Maturity Jan. 15, 2019
Call Make-whole T+35
Trade May 13, 2013
Settle May 20, 2013
Books ITAU/C/HSBC
Px Talk T+230; guidance T+235 area; IPT T+250 area
Notes Guaranteed by Petroleo Brasileiro
Issuer Petrobras Global Finance B.V.
Ratings BBB/A3
Amount $3.5 billion
Issue SEC-registered senior notes
Coupon 4.375%
Price 98.828
Yield 4.522%
Spread T+260
Maturity May 20, 2023
Call Make-whole T+40
Trade May 13, 2013
Settle May 20, 2013
Books BAML/JPM/MS
Px Talk T+260; guidance T+265 area; IPT T+275 area
Notes Guaranteed by Petroleo Brasileiro
Issuer Petrobras Global Finance B.V.
Ratings BBB/A3
Amount $1.75 billion
Issue SEC-registered senior notes
Coupon 5.625%
Price 98.027
Yield 5.764%
Spread T+265
Maturity May 20, 2043
Call make-whole T+40
Trade May 13, 2013
Settle May 20, 2013
Books C/HSBC
Px Talk T+265; guidance T+270 area; IPT T+285
Notes Guaranteed by Petroleo Brasileiro
Proceeds will be used for capital expenditure and for general corporate purposes

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