This excerpt taken from the PBR 6-K filed Feb 12, 2009.
US$ 1.5 billion issue of Global Notes, due March 2019
Rio de Janeiro, February 12 2009 PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that, through its wholly-owned subsidiary Petrobras International Finance Company (PifCo), completed yesterday the issuance of US$ 1.5 billion in unsecured, unsubordinated senior debt format due March 15, 2019 in the international capital market, under the following terms:
Coupon: 7.875% p.a.
Yield to Maturity for the Investors: 8.125%
Spread to American Treasury Note: 518 basis points
Interest Payment: March 15 and September 15 of each year, beginning on September 15, 2009.
Ratings: Baa1 Stable (Moodys); BBB Stable (S&P); BBB Stable (Fitch)
Joint Bookrunners: HSBC Securities (USA) Inc., J.P. Morgan Securities Inc. & Santander Investment Securities Inc.
Co-Managers: Citigroup Global Markets Inc. & BB Securities Limited
The demand was 3.5 times higher than the final volume and the notes were distributed to over 230 investors, the majority of which dedicated to high grade fixed income markets. The funds will be used for general corporate purposes, including the financing of the Business Plan 2009-1013.
This was the first issuance of a Brazilian company since July 2008, when the effects of the international financial crises exacerbated. Also, it was the first one coordinated by institutions which granted Petrobras a two years bridge loan funding until the company could better access the capital markets, via long term bond issues, as announced during the release of the Business Plan 2009-2013.
These Global Notes constitute general senior unsecured and unsubordinated obligations of PifCo. Petrobras will unconditionally and irrevocably guarantee the full and punctual payment when due and this guarantee will rank pari passu, without any preferences among themselves, with all other unsecured and unsubordinated obligations of Petrobras.
This document may contain forecasts that merely reflect the expectations of the Companys management. Such terms as anticipate, believe, expect, forecast, intend, plan, project, seek, should, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: February 12, 2009
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.