Bonds backed by four Odebrecht drilling rigs plunged to the lowest since they were issued after Brazil’s state oil company canceled a contract to rent one of the ships.
Odebrecht Offshore Drill Finance’s $1.5 billion of bonds due 2022, which are backed by cash flows coming from the drill ships, fell 13 percent to 25 cents on the dollar at 2:42 p.m. New York time. Another $550 million in perpetual dollar bonds from Odebrecht Oil & Finance, which rely on cash flows coming from Odebrecht Oleo e Gas projects, also declined to a record 20 cents.
Odebrecht said Thursday that it received notification from Petroleo Brasileiro SA of the termination of its contract for drill ship ODN Tay IV on Sept. 22. Odebrecht Oleo e Gas said it is analyzing the terms of the Petrobras decision and that the charter contracts for its other three vessels backing the bonds haven’t been altered.
Petrobras didn’t immediately reply an e-mailed request for comment.
Bloomberg/Sept 24/2015
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