Simpson Thacher Advises on $700 Million Senior Notes Offering by PRIO Luxembourg Holding S.à r.l.

Strategic Insights -

Simpson Thacher & Bartlett LLP represented the initial purchasers in a US$700 million senior notes offering by PRIO Luxembourg Holding S.à r.l., a subsidiary of PRIO S.A. PRIO is a leading oil and gas company in Brazil, operating four fields in the Campos Basin. The proceeds from the notes offering will be used to fund the repurchase of notes pursuant to a concurrent tender offer, as well as for general corporate purposes, including the payment of part of the purchase price relating to the Equinor Peregrino Field Acquisition.

Key Takeaways:

  • Simpson Thacher advised Itau BBA USA Securities, Banco BTG Pactual, Citigroup, HSBC Securities, Morgan Stanley, Santander US Capital Markets, Scotia Capital, and SMBC Nikko Securities in a US$700 million senior notes offering by PRIO Luxembourg Holding S.à r.l.
  • PRIO is a leading oil and gas company in Brazil, operating four fields in the Campos Basin, with a focus on producing assets and a core portfolio.
  • The Simpson Thacher team included Grenfel S. Calheiros, Paulo F. Cardoso, Sid Fresa, Doug Ogata, and Jonathan Cantor.
  • PRIO used the proceeds from the notes offering to fund the repurchase of notes pursuant to a concurrent tender offer and for general corporate purposes, including the payment of part of the purchase price relating to the Equinor Peregrino Field Acquisition.
  • PRIO is one of the main oil and gas companies operating in Brazil and the leading company among non-government owned oil and gas companies in Brazil based on production volume of oil and gas products.
  • The firm represented the same institutions as dealer managers in connection with an any-and-all concurrent tender offer for PRIO's outstanding 6.125% senior secured notes due 2026.

Statistics:

  • The total amount of the senior notes offering was US$700 million.
  • PRIO operates four fields in the Campos Basin.
  • The firm used 6.750% Senior Unsecured Notes due 2030 for the offering.
  • The proceeds from the notes offering will be used to fund the repurchase of notes and for general corporate purposes, including the payment of part of the purchase price relating to the Equinor Peregrino Field Acquisition.
  • PRIO is the leading company among non-government owned oil and gas companies in Brazil based on production volume of oil and gas products.

Sources:

  • Simpson Thacher & Bartlett LLP
  • Original Press Release: [Oct. 15]