Petrobras prepays $4.17 billion, gets $1.13 billion of new financing

By Angela McDaniels

Tacoma, Wash., Oct. 2 – Petroleo Brasileiro SA executed prepayment, renegotiation and new financing operations in the total amount of $6.3 billion, according to a 6-K filing with the Securities and Exchange Commission.

The company prepaid $1 billion of debt due 2019 owed to BNP Paribas, $1 billion of debt due 2019 owed to Bank of China and $666 million of debt due 2018 owed to HSBC.

The company prepaid $1.5 billion of debt due 2018 and 2019 owed to Bank of America, which provided $1,125,000,000 of new financing due 2022 and 2023.

The company renegotiated $570 million of financing with Banco Mizuho. The new maturity is 2021 and 2022. The original maturity was 2018 and 2019.

Additionally, the company settled a financing operation with BNDES linked to its Nitrogen Fertilizer Unit III, which is in the process of divesting, in the amount of R$1.4 billion, whose maturity will be in 2024.

The company said it will continue to assess new prepayment and funding opportunities under its liability management strategy, which aims to improve the amortization profile.

Petrobras is an energy company based in Rio de Janeiro.

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