Milbank LLP advised 3R Petroleum Óleo e Gás S.A. (“3R Petroleum”) and its subsidiary 3R LUX in connection with the US$1 billion financing for the acquisition, by its subsidiary 3R Potiguar, of the assets of the Potiguar oil and gas cluster from Petrobras. The total financing comprised a US$500 million credit agreement syndicated to international and Brazilian banks and for which Morgan Stanley acted as lead arranger, and a US$500 million local offering of debentures. In addition to advising 3R Petroleum in the negotiation and contracting of the syndicated credit facility, Milbank analyzed the impact of the debentures offering on 3R Petroleum’s international financing and also assisted 3R Petroleum and 3R LUX in the related international hedge transactions. The Potiguar cluster has 22 concessions of onshore and shallow water oil and gas fields in the Potiguar Basin, in the state of Rio Grande do Norte, Brazil, is one of the main assets held by the 3R group.
The Milbank team advising 3R Petroleum was led by partners Fabiana Sakai and Tobias Stirnberg (Capital Markets, São Paulo) and included partners Andrew Walker (Tax, New York), Joel Krasnow (Executive Compensation and Employee Benefits, New York), Catherine Leef-Martin (AIP, New York) and John Williams (Derivatives and AIP, New York), as well as special counsel Jeffrey Susskind (Finance, São Paulo) and Elizabeth Martinez (Derivatives and AIP, New York), and associates Amanda Borges (Capital Markets, New York), and David Hanno (Tax, New York).
