OSX 3 Leasing defaults on 13% bonds amid insurance payment shortfall

By Caroline Salls

Pittsburgh, Oct. 2 – OSX 3 Leasing BV defaulted on its 13% senior secured callable bond issue 2012/2015, according to a notice from trustee Nordic Trustee ASA.

The company said in a letter to the trustee that it failed to provide evidence that there were enough funds in escrow to pay insurance premiums due between Oct. 1 and the bond maturity date.

As a result of ultimate parent OSX Brasil SA’s ongoing restructuring in Brazil, the company said it has not been possible for funds to be downstreamed to OSX 3 Leasing to satisfy the insurance obligations.

According to the letter, OSX 3 Leasing is in talks with the bond trustee and its advisers regarding the default.

OSX 3 Leasing is a subsidiary of OSX Brasil SA, a Rio de Janeiro-based oil and gas holding company.

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