Brazil's Petrobras seeks consents to amend 9 1/8%, 7¾%, 8 3/8% notes

By Susanna Moon

Chicago, March 11 - Petroleo Brasileiro SA (Petrobras) said its wholly owned subsidiary Petrobras International Finance Co. is soliciting consents to amend the 9 1/8% notes due 2013, 7¾% notes due 2014 and the 8 3/8% notes due 2018.

The consent solicitation will end at 5 p.m. ET on March 22.

The company is soliciting consents to amend the notes to modify the merger covenant of the indenture to eliminate the requirement that any successor entity to Petrobras International, as a result of a merger, consolidation or similar transaction, be a company incorporated in the Cayman Islands, according to a press release.

Petrobras said it is soliciting the consents because it has decided that it is more efficient, from a tax perspective, to re-domicile the subsidiary to a jurisdiction outside the Cayman Islands. Petrobras guarantees, and will continue to guarantee, all of the subsidiary's debt obligations through full and unconditional guarantees of payment.

If the company receives the needed consents, holders will receive a consent payment of $1.25 for each $1,000 principal amount of notes for which consents have been delivered under the solicitation.

J.P. Morgan Securities LLC (866 846-2874 or collect 212 834-2052) is the solicitation agent. Global Bondholder Services Corp. (866 736-2200) is the tabulation agent and the information agent.

Petrobras is an energy company based in Rio de Janeiro.

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