Vantage Bonds Plunge as Petrobras Cancels Deal Amid Bribe Probe

  • Contract made up more than 60 percent of revenue backlog
  • Oil servicer has more than $2.5 billion of outstanding debt
Lock
This article is for subscribers only.

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 filingBloomberg Terminal on Wednesday.