Rio de Janeiro, September 27, 2010 Petróleo Brasileiro S.A. - Petrobras announced that it has priced its global offering of 2,293,907,960 common shares, including 269,296,750 common shares in the form of American Depositary Shares (ADSs) and 1,788,515,136 preferred shares, including 200,833,954 preferred shares in the form of ADSs (not including any exercise of the underwriters over-allotment option). The common shares were offered to the public in Brazil at a price of R$29.65 per share, and the preferred shares were offered to the public in Brazil at a price of R$26.30 per share. Common shares in the form of ADSs (common ADSs, each common ADS representing two common shares) were offered to the public internationally at a price of US$34.49 per common ADS, and preferred shares in the form of ADSs (preferred ADSs, each preferred ADS representing two preferred shares) were offered to the public internationally at a price of US$30.59 per preferred ADS. The aggregate proceeds of the global offering to Petrobras, after underwriting discounts and commissions (before expenses), will be equivalent to approximately US$67 billion.
The global offering consists of a registered offering in Brazil and an international offering, which includes a registered offering in the United States. The global offering is scheduled to close on Wednesday, September 29, subject to satisfaction of customary conditions. Further information about the offers is contained in the offering documents.
Existing shareholders of Petrobras were given the right to subscribe for shares in the Brazilian offering on a priority basis. The Brazilian federal government, our principal shareholder, as well as BNDES Participações S.A., FPS/BNDES, and the Brazilian sovereign wealth fund (FFIE), which are affiliates of the government, have agreed to purchase a total of 1,810,505,485 common shares and 994,917,669 preferred shares in the offering. In the aggregate, the Brazilian federal government and these entities will own approximately 64% of our common shares and 48% of our total outstanding shares after the offering.
The common ADSs and the preferred ADSs are listed on The New York Stock Exchange under the symbols PBR and PBRA, respectively. The ADSs offered in the global offering are expected to be delivered on Wednesday, September 29, in time to settle trades completed on The New York Stock Exchange on Friday, September 24. The common shares and preferred shares are listed on the São Paulo Stock Exchange under the symbols PETR3 and PETR4, respectively. The shares offered in the global offering are expected to be delivered on Wednesday, September 29, in time to settle trades completed on the São Paulo Stock Exchange on Monday, September 27.
Petrobras has granted the international underwriters and the Brazilian underwriters options for a period of up to 30 days beginning on September 24, 2010, to purchase an aggregate of up to 187,997,094 additional common and preferred shares, including shares in the form of ADSs, solely to cover over-allotments, if any.
This communication does not constitute an offer to sell or the solicitation of an offer to buy the securities described, nor shall there be any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Petrobras has an effective registration statement on file with the SEC. Copies of the final prospectus supplement for the international offering may be obtained, when available, from Bank of America Merrill Lynch at 1-866-500-5408, Bradesco Securities, Inc. at email@example.com, Citigroup Global Markets Inc. at 1-800-831-9146, Itaú Securities collect at 1-212-710-6766, Morgan Stanley & Co. Incorporated at 1-866-718-1649 or Santander Investment Securities at 1-212-350-3649, or by visiting EDGAR on the SEC Web site at www.sec.gov. Before you invest, you should read the prospectus supplement and other documents that Petrobras has filed and will file with the SEC for more complete information about Petrobras and the offering.
CFO and Investor Relations Director
Petróleo Brasileiro S.A. Petrobras