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Oro Negro Drilling OK’d for liquidity issue under 7½% secured bonds
By Susanna Moon
Chicago, Jan. 16 – Oro Negro Drilling Pte. Ltd. obtained holder support under its $939,100,570 of 7½% senior secured bonds due 2019 to issue new liquidity bonds.
The written resolution was posted Tuesday and passed unanimously the same day with enough holders to form a quorum, according to a notice by Nordic Trustee AS.
Specifically, the issuer is asking for holders to approve amendments to the 7½% notes in connection with the new liquidity bonds.
A subsidiary of the parent has issued $25 million of new bonds, with the potential to issue tack-ons for up to $50 million.
“In connection with the ongoing negotiations, multi-jurisdictional efforts and latest developments concerning the financial situation of the issuer and the rig owners, the direct parent of the issuer and its subsidiaries have incurred costs and expenses in connection with their efforts to safeguard their assets,” according to a separate notice by the trustee announcing the resolution.
Over the past 14 months, bondholders have used funds to pay professional adviser fees, external consultants, Mexican amparo bond premiums and other expenses for legal efforts in Mexico, the United States and Singapore.
To cover the operating expenses of the group, the bondholders have issued the liquidity bonds to provide further funding.
To purchase the liquidity bonds, holders must do so by Jan. 30.
The summons was brought at the request of an ad hoc group of noteholders representing more than 66.67% of the bonds.
The notes were issued Jan. 24, 2014.
Oro Negro is an oil and gas services company based in Alvaro Obregon, Mexico.
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