Premier a step closer to refinancing

LONDON, March 1, 2017 – Embattled UK independent Premier Oil announced on Wednesday that an ad hoc committee of bondholders has agreed to refinance USD 245 million of convertible bonds.

According to the new terms, the maturity date of the bonds will be extended to May 31, 2022, interest rate will stay at 2.5% and the conversion price will be 20% more than whichever is higher of the average volume weighted average price of the company’s shares between now and March 22, 2017, or GBP 0.62.

“All seven members of the ad hoc committee, representing 47% of the convertible bonds, have now locked up to the above terms,” Premier said in a statement.

Still, the company needs the agreement of the holders of at least 50% of the bonds in order to force through the amendment of the terms at a meeting of the convertible bondholders.

“In the event that the extraordinary resolution fails and Premier has to implement the amendments through an alternative mechanism, equity warrants will only be issued to convertible bondholders who have locked up prior to the meeting,” the statement added.

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