QGOG Constellation again extends offer for 6¼% notes to allow talks

New York, May 22 – Brazil’s QGOG Constellation SA further extended its exchange offer for its 6¼% senior notes due 2019 to allow discussions with noteholders to continue, according to a press release.

The new expiration is 11:59 p.m. ET on May 26, pushed back from 11:59 p.m. ET on May 19.

QGOG said the extension is to allow ongoing discussions with a group of bondholders representing 70% of the existing notes.

As of the old expiration date, the company had received tenders for $94.3 million of the notes, up from $91.6 million at 11:59 p.m. ET on May 12.

The company last extended the offer on May 15, when it delayed the expiration from 11:59 p.m. ET on May 12, also to allow the discussions to continue.

Before that the offer had been extended from 11:59 p.m. ET on May 5, at which point $89.2 million of notes had been tendered and the original expiration date of 11:59 p.m. ET on April 28, when the total was $88.6 million.

As announced April 3, the company is offering to issue 8½% senior notes due 2024 in exchange for tendered 6¼% notes.

Holders will receive $1,000 of new notes for each $1,000 of 6¼% notes tendered for exchange by 11:59 p.m. ET on April 28, the revised early tender date.

The company said on April 18 that it had extended the early deadline from 5 p.m. ET on April 17 to provide holders with more time to review the exchange.

Holders who tender after the early deadline will receive par less the early exchange premium, or $950 of new notes per $1,000 principal amount.

QGOG will pay accrued interest in cash.

Concurrently with the exchange, the issuer is soliciting consents to amend the note indenture in order to eliminate substantially all of the restrictive covenants and certain events of default and related provisions.

Holders who tender must deliver consents.

Completion of the offer is subject to the tender of at least 90% of the existing notes.

Ipreo LLC (212 849-3880 or 888 593-9546) is information agent and exchange agent.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.