Brazil's Petrobras gets consents for two note series, extends one bid

By Susanna Moon

Chicago, March 25 - Petroleo Brasileiro SA (Petrobras) said its wholly owned subsidiary Petrobras International Finance Co. obtained the needed majority consents to amend the 7¾% notes due 2014 and the 8 3/8% notes due 2018.

The company also extended the consent solicitation for the 9 1/8% notes due 2013 to 5 p.m. ET on April 5, according to a press release.

The consent solicitation had been set to end at 5 p.m. ET on March 22. The offers began March 11.

The offers for the 7¾% notes and the 8 3/8% notes ended as scheduled at 5 p.m. ET on March 22, and those consents may no longer be revoked, the release noted.

As noted before, 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.

Petrobras previously 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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