Bonds of Vantage Drilling Co. dropped as Petroleo Brasileiro SA terminated a $1.7 billion drill deal amid a bribery investigation.
The deepwater-rig owner’s $1.1 billion of 7.5 percent secured bonds slid 5 cents to 42 cents on the dollar, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Its contract for the drillship Titanium Explorer was terminated by Petrobras for an alleged breach of obligations, according to a regulatory filing on Wednesday.
The Petrobras contract represented a majority of Vantage’s revenue backlog and its termination may impact the company’s ability to service debt, according to Bloomberg Intelligence analyst Andrew Cosgrove.
Brazil Energy Insight 
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