Brazil's Petrobras gets consents for 9.125% notes after extended bid

By Susanna Moon

Chicago, April 8 - Petroleo Brasileiro SA (Petrobras) said its wholly owned subsidiary Petrobras International Finance Co. obtained the needed consents to amend the 9.125% notes due 2013 and expects to execute a supplemental indenture.

The consent solicitation for the 9.125% notes ended at 5 p.m. ET on April 5, extended from March 22, according to a press release.

As noted before, the company needed consents for a majority of the notes in order to amend them.

Petrobras said on March 25 that its subsidiary received the needed majority consents to amend the 7.75% notes due 2014 and the 8.375% notes due 2018.

The offers for the 7.75% notes and the 8.375% notes ended as scheduled at 5 p.m. ET on March 22. The offers began March 11.

After having received the needed consents, the company will pay a consent payment of $1.25 for each $1,000 principal amount of notes.

Petrobras previously said it solicited the consents because it decided that it was 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.

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

Petrobras is an energy company based in Rio de Janeiro.

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