Daily News: March 9, 2018

MUFG Leads $4.35B Petrobas Revolver


Petróleo Brasileiro (Petrobas) entered into a $4.35 billion revolving credit facility with a syndicate of 17 banks.

The Bank of Tokyo-Mitsubishi UFJ served as senior mandated lead arranger on the transaction, while Bank of America, Bank of China, HSBC Bank, JPMorgan Chase Bank, Morgan Stanley, Banco Santander Brasil and The Bank of Nova Scotia served as mandated lead arrangers.

BNP Paribas, Citibank, Credit Agricole and Mizuho acted as bookrunners, with Deutsche Bank and Standard Chartered Bank serving as lead managers. Other participants in the facility included Sumitomo Mitsui Banking Corporation, ING and Commerzbank.

The product will cost 0.51% P.A. for the maintenance of the limit with the banks. In the case of withdrawals, the cost of the line is fixed at 6M LIBOR plus 1.7% P.A., if the rating of the company at the time of drawing is below investment grade, and 6M LIBOR plus 1.3% P.A., if the company has investment grade rating as of the date of drawing.

The facility will mature in March 2023. Petrobas may make withdrawals from the line until the month prior to maturity and may use the cash for early repayment of current debts, allowing for the reduction of the carrying cost of debt.