Bond debt paid, operations unscathed by strike: PdV

Venezuela´s financially strapped state-owned oil company PdV paid off a $1bn bond at maturity today and faces another large payment on 2 November against an increasingly tense political backdrop.

PdV paid off its 2016 bond today the same week it swapped $2.79bn of a combined $7.1bn that it owes on two PdV 2017 bonds for a $3.36bn PdV 2020 bond with an 8.5pc coupon and four annual principal payments from 2017-20.

PdV collateralized the new 2020 bond with 50.1pc of the equity of Citgo Holding, a Delaware corporation that owns Citgo's US refineries and some related pipeline assets.

Before this week's bond swap, PdV also had a $2.3bn principal and interest payment due on 2 November on a PdV 2017 bond with an 8.5pc coupon that reaches final maturity in November 2017. The company owed $4.1bn of outstanding principal on this bond as of 16 September 2016.

Following the partial bond swap, the actual principal payment due on 2 November likely will be lower given the mix of the voluntary bond swap operation that PdV closed on 24 October, a ministry official said.

PdV swapped over $1.82bn or 45.30pc of the $4.1bn of principal outstanding on this PdV 2017 bond for the PdV 2020 bond. As a result, next week's principal payment could be about $1.4bn, the official said.

PdV also swapped over $942.1mn or 31.40pc of the $3bn 2017 bond paying 5.25pc interest that matures next April. That leaves the company owing holders of this bond over $2bn of principal and interest that comes due on 12 April 2017.

Government opponents organized a 12-hour general strike today. Although banks and other businesses were open, significantly reduced pedestrian and vehicle traffic in Caracas throughout the day suggests that many workers stayed home in defiance of President Nicolas Maduro.

"No one stops Venezuela," said Maduro, who yesterday warned that companies that stopped activities would be taken over by the government.

Energy minister and PdV chief executive Eulogio Del Pino said today's strike had no effect on the company's operations. PdV met its 2016 senior note maturity on time, all core operations are normal, and oil workers rejected the opposition's call for a strike, he added.

The opposition-controlled National Assembly president Henry Ramos Allup today sent Maduro a written notice to appear before the legislature on 1 November to explain why he should not be impeached. Maduro will ignore the summons, a palace official said.

Tensions are likely to further escalate on 3 November when opponents plan a peaceful march on the Miraflores presidential palace to press their demands for a presidential recall referendum, or alternatively new general elections, and the release of all political prisoners.

Senior officials of the ruling PSUV party, including hardline deputy Diosdado Cabello, yesterday declared that the opposition would not be allowed to approach the presidential palace under any circumstances.