Yields on OSX Brasil SA’s $500 million of 9.25 percent notes due in June 2018 surged to the highest level since they were issued after the oil-vessel builder’s main client cut production targets.
Yields on the debt jumped 90 basis points to 9.5 percent as of 12:40 p.m. in New York, according to data compiled by Bloomberg. The notes fell 2.05 cents to 100.15 cents on the dollar. OGX Petroleo & Gas Participacoes SA cut production estimates at its first project by as much as 75 percent. Both companies are controlled by Brazilian billionaire Eike Batista.