Venezuela’s cash-strapped state oil company is offering service providers a debt exchange, proposing to swap $2.5 billion worth of debt for dollar bonds, according to two contractors who were offered the deal and documents reviewed by the Wall Street Journal. Under the deal, a subsidiary of Petróleos de Venezuela SA, known as PDVSA, would issue a three-year international bond and hand it to approved suppliers in exchange for cancelling some of the $20 billion worth of unpaid invoices. The bond would be priced at about a 40% discount to the company’s benchmark obligation, which currently trades at about 45 cents on the dollar, said the sources and the deal prospectus. PDVSA representatives began sounding out local and international suppliers last week to gauge interest in the swap, and the company has hired Miami firm […]