NEW YORK, June 1 (IFR) - Creditors holding some US$9.6bn equivalent of Petrobras debt have agreed to tender as part of the Brazilian oil company's latest bond buyback.
The liability management exercise is being funded through proceeds raised in a US$6.75bn dual-tranche bond sale priced in May.
The waterfall structure prioritizes the repurchase of dollar and euro-denominated bonds, starting with the shortest and often the most expensive securities.
Petrobras agreed to accept for purchase all of the following securities: 3.5% 2017s, 3.25% 2017s, FRNs due 2017, 2.75% 2018s, 5.875% 2018s and 4.875% 2018s.
Holders will receive an early bird price of 100.75, 100.50, 100.625, 98.5, 102.25 and 101.125, respectively.
It is only accepting US$65.267m of the 3% 2019s and none of the FRNs due 2019, the 7.875% 2019s and the 3.25% 2019s. In all, Petrobras will pay about US$6.06bn to repurchase these securities.
At the same time, the company has extended the early tender date to repurchase any and all of its 8.375% 2018s until June 14. It has also increased the purchase price to 110.00 from 107.875.
BB Securities, JP Morgan, Bank of America Merrill Lynch and Santander acted as leads and dealer managers on the trade. (Reporting by Paul Kilby; Editing by Marc Carnegie)