Former QGOG defers Nov. 9 cash interest payments on 2019, 2024 notes

By Caroline Salls

Pittsburgh, Nov. 9 – Constellation Oil Services Holding SA, formerly known as QGOG Constellation SA, announced Friday that it intends to utilize a 30-day grace period and defer a $27 million cash interest payment on its 9½% senior notes due 2024 and a $3 million cash interest payment on its 6¼% senior notes due 2019, both of which were due Nov. 9.

According to a news release, Constellation Oil made the strategic decision to use the 30-day grace period to advance ongoing discussions with some of its key lenders and a group of holders of the 2024 notes related to a comprehensive re-profiling of its capital structure to match its operating business and the industry’s current economic environment.

The company said it does intend to make the PIK portion of the interest payment due Nov. 9 on the 2024 notes.

Constellation Oil is a Rio de Janeiro-based provider of off- and on-shore drilling in Brazil through subsidiary Queiroz Galvao Oleo e Gas SA.

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