PDVSA Bonds Surge as Company Says It Will Announce Debt Swap
- Company plans to swap 2016, 2017 bonds for longer-dated debt
- PDVSA has $4.1 billion of bond payments yet to make this year
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Petroleos de Venezuela SA’s bonds surged to a two-year high as Oil Minister Eulogio Del Pino said the state-owned oil company is close to announcing a $7 billion plan to exchange notes due this year and next for debt with a longer maturity.
PDVSA’s $3 billion of bonds due in April 2017 rose 3.14 cents to 71.41 cents on the dollar at 4:54 p.m. in New York, reaching the highest since September 2014. Traders pared back bets on an imminent default, with credit default swaps now showing a 51 percent probability the company will miss payments over the next year, down from 61 percent three months ago.