OGX Sells $2.56 Billion of Seven-Year Bonds in Debut Issue
This article is for subscribers only.
OGX Petroleo & Gas Participacoes SA, the oil company controlled by Brazilian billionaire Eike Batista, sold $2.56 billion of bonds in its debut international offering, according to a person familiar with the transaction.
OGX sold the seven-year debt to yield 8.5 percent, or 611 basis points more than similar-maturity U.S. Treasuries, said the person, who asked not to be identified because he wasn’t authorized to comment on the sale. The average yield on Brazilian corporate debt is 5.88 percent, according to JPMorgan Chase & Co.’s index. The company initially marketed the securities with a yield as low as 7.5 percent.