(Bloomberg) -- Petroleo Brasileiro SA’s woes are turning
into a windfall for one group of bond investors.
Facing billions of dollars in writedowns and all but shut
out of overseas debt markets because of a widening kickback
investigation, Brazil’s state oil producer said this month it
will sell $13.7 billion in assets. That’s bolstering speculation
its assets in Argentina will be among those that newly installed
Chief Executive Officer Aldemir Bendine will jettison. Petrobras
looked to unload its Buenos Aires-based producer in 2013.
The talk has spurred a 2.8 percent jump in Petrobras
Argentina’s $300 million of notes in the past month as investors
wagered that a sale of the Argentine unit, or a significant
amount of its assets, would trigger a change-of-control clause
requiring a 101-cent buyback. Oil-industry debt in emerging
markets has slumped 0.4 percent in that span. And the fact that
Petrobras Argentina notes are still trading about 4 cents shy of
the repurchase level suggests there are more gains to be had.
“With the new management in place, it is clear now that
the disposal will happen,” Omar Zeolla, a corporate debt
analyst at Oppenheimer Co., said by telephone from New York.
“The notes will easily reach the 101 level in the next days.”
In response to questions, a Petrobras spokeswoman in Rio
referred a reporter in an e-mail to a March 2 filing outlining
the producer’s divestment plans for 2015-2016. The filing didn’t
specify the company’s plans for Argentina.
In a separate statement, a spokesman in Argentina said the
company wants to keep its strategic position in the country by
increasing gas and oil output from the Neuquen basin.
Rejected Bids
In 2013, Petrobras held four months of talks with potential
suitors for its Argentine assets before disclosing in May of
that year that it rejected all bids.
No later than 60 days after a change of control, Petrobras
is required to make an offer to buy all outstanding notes at a
price equal to 101 percent of principal plus accrued interest up
to the date of repurchase, according to the prospectus.
Petrobras Argentina produces an estimated 97,000 barrels of
oil a day in the country and is majority owner of Transportadora
de Gas del Sur SA, the largest gas pipeline operator in
Argentina.
“It is clear this time that there is more pressure to
divest,” Nymia Almeida, an analyst at Moody’s Investors
Service, said by telephone from Mexico city. “This will be good
for creditors.”
To contact the reporter on this story:
Pablo Gonzalez in Buenos Aires at
pgonzalez49@bloomberg.net
To contact the editors responsible for this story:
James Attwood at
jattwood3@bloomberg.net
Lester Pimentel, Bradley Keoun