Constellation Oil sees 92% noteholder participation in rights offering

By Marisa Wong

Los Angeles, July 30 – Constellation Oil Services Holding SA announced the results of its rights offering for holders of its 9% cash/0.5% PIK senior secured notes due 2024 to purchase their share of up to $27 million of its 10% PIK/cash senior secured first-lien tranche due 2024.

As of 5 p.m. ET on July 26, the expiration of the offer, holders of about 92% of the aggregate principal amount of existing 2024 notes elected to participate.

Under the terms of the amended and restated backstop commitment agreement entered into by the backstop investors and the company on June 28, holders of 52.95% of the outstanding principal amount of the existing 2024 notes will purchase the aggregate principal amount of the first-lien tranche that was unsubscribed in the rights offering.

Specifically, the company will issue $27 million of the first-lien notes for an aggregate purchase price of $27 million.

D.F. King & Co., Inc. is the information agent for the rights offering, and Wilmington Trust, NA is the subscription agent.

Constellation is a provider of offshore and onshore oil and gas contract drilling and FPSO services in Brazil through its Rio de Janeiro-based subsidiary Servicos de Petroleo Constellation SA, which made a Chapter 15 bankruptcy filing on Dec. 6, 2018 to gain U.S. court recognition of its Brazilian judicial reorganization proceedings. The Chapter 15 case number is 18-13952.

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