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Cobalt skips Dec. 1 coupon due on 2.625% convertible notes due 2019
By Marisa Wong
Morgantown, W.Va., Dec. 1 – Cobalt International Energy, Inc. has chosen not to make the $8.1 million interest payment due on Dec. 1 with respect to its outstanding 2.625% convertible senior notes due 2019, according to an 8-K filing with the Securities and Exchange Commission.
Under the indenture governing the notes, the company has a 30-day grace period to make the interest payment.
If the company fails to make the coupon payment within the grace period, an event of default will result. The trustee or noteholders holding at least 25% of the outstanding principal amount of the notes could then elect to accelerate the notes, causing them to be immediately due and payable.
In addition, an event of default under the notes would trigger an event of default under all of the company’s other outstanding debt.
Houston-based Cobalt is a development-stage oil exploration and production company.
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