Time New York: Wed 20 Jun 05:35 am  |  Save 15% on H&R Block Online


Petrobras’ Subsidiary Prices Global Notes Worth $4 Billion


Petrobras Global Finance B.V., a fully owned affiliate of Brazil's state-run energy giant Petroleo Brasileiro S.A. or Petrobras PBR, recently declared the pricing of unsecured global notes denominated in U.S. dollars. The offering is expected to close on Jan 17, 2017.

Out of the US$4 billion notes, global notes worth US$2 billion are scheduled to mature in 2022. These notes will carry an interest rate of 6.125% and will likely be priced at 100% of their face value. The remaining US$2 billion notes, which are slated to mature in 2027, will carry an interest rate of 7.375% and are estimated to be priced at 100% of their face value.

Petrobras intends to utilize the proceeds from the notes to repurchase notes that are validly tendered and accepted for purchase by Petrobras Global Finance in the previously announced cash tender offers. The remaining proceeds, if any, will be used for general corporate purposes.

Headquartered in Rio de Janeiro, Petrobras is the largest integrated energy firm in Brazil and one of the largest in Latin America. The company’s involvement in the multibillion-dollar money laundering and bribery case has not only hurt its goodwill but also put its credit rating at risk, making it difficult for the firm to find creditors.

Over the past year, the Zacks categorized U.S. Oil and Gas Emerging Markets Integrated industry has registered an impressive growth of 61.91%. However, shares of Petrobras have outperformed the industry by registering growth of 143.02%.

Petrobras currently carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.

Some better-ranked players from the broader energy sector include Braskem S.A. BAK, Baker Hughes Incorporated BHI and Cheniere Energy Partners, L.P. CQP. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.

In the last quarter, Cheniere Energy Partners posted a positive earnings surprise of 185.71%.

the last quarter, Baker Hughes Incorporated posted a positive earnings surprise of 65.1%.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.