QGOG Constellation Announces Agreement on Further Forbearance with Certain Creditors

LUXEMBOURG, June 15, 2018 /PRNewswire/ -- QGOG Constellation S.A. ("QGOG Constellation" or the "Company") today announced that it has entered into a further forbearance agreement with respect to a $27.3 million interest payment due on its 9.000% Cash/0.500% PIK Senior Secured Notes due 2024 (the "2024 Notes").

The Company had previously entered into a forbearance agreement expiring on June 15, 2018 with (i) the holders of over 75% of the aggregate principal amount of the 2024 Notes outstanding, (ii) Banco Bradesco S.A. and (iii) a majority of its project finance lenders.  These parties and the Company have agreed to a further forbearance agreement expiring June 22, 2018.

The Company's determination not to make the interest payment on the 2024 Notes at this time is a strategic decision to facilitate ongoing negotiations with the Company's key stakeholders.  The Company continues to advance these discussions with the aim of a comprehensive re-profiling of its capital structure to match its operating business and the industry's current economic environment.

Finally, the Company's subsidiary, QGOG Atlantic / Alaskan Rigs Ltd., intends to satisfy all remaining obligations under its 5.25% Senior Secured Notes due on July 30, 2018. Those remaining obligations are expected to be fully satisfied by the amounts currently deposited as cash collateral and by the Atlantic Star rig's operational cash flows until the maturity date.

NOTICE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws.  Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis.  However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the "forward-looking statements."  The Company undertakes no obligation to release publicly revisions to any "forward-looking statement," including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.  Investors should not assume that any lack of update to a previously issued "forward-looking statement" constitutes a reaffirmation of that statement.  Continued reliance on "forward-looking statements" is at investors' own risk.

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SOURCE QGOG Constellation S.A.