Oro Negro Drilling receives 2019 bondholder approval to merge bonds

By Sheri Kasprzak

New York, April 18 – Oro Negro Drilling Pte. Ltd. received approval from its 2019 bondholders to merge 2015 bonds issued by Oro Negro Impetus Ptd. Ltd. into the company’s 7˝ % senior secured issue, according to a notice from bond trustee Nordic Trustee ASA.

The merger will be completed through the issuance of bonds to each 2015 bondholder in exchange for their 2015 bonds and unpaid interest.

Following the completion of the merger, Oro Negro Impetus will become a subsidiary of Oro Negro Drilling. The parent would receive a security interest in Oro Negro Impetus’ assets, including its Impetus rig.

The bondholders are being asked to waive a requirement that Oro Negro Drilling maintain a minimum liquidity of $5 million per rig until the completion of the merger and access up to $11.78 million from an issuer earnings account to operate rigs.

If the merger is completed on April 22, the trustee reported there would be $937.37 million of 2019 bonds outstanding. The 2019 bondholders will receive $40.24 million in 2019 bonds in exchange for interest due.

The oil and gas services company is based in Alvaro Obregon, Mexico.

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