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Premier Oil has wrapped up the terms of a long-awaited refinancing deal that some had hoped for last month.

The company, one of the biggest independent producers in the North Sea, was in negotiations with its lenders for over nine months to refinance its debt, which stood at $2.8bn at the end of December.

The company has revised the terms on its convertible bonds and proposed new terms for its retail bonds. Crucially, it is also pushing out some debt maturities to 2021 and beyond.

In return, lenders will get “enhanced economics and certain governance controls”. A new set of terms will be circulated around lenders by the end of this month, with new documentation due by the end of May.

Chief executive Tony Durrant said:

The agreement of the long form term sheet with representatives of our Private Lenders marks a significant milestone for Premier.

We are grateful for our lenders’ continued support, which reflects the high quality nature of our asset base, the strong recent operating performance and our plans to deliver value for all of our stakeholders.

Premier said in November it hoped to lock up the terms of a deal by the end of 2016 but full details of the proposed refinancing needed to be approved by 75 per cent of lenders.

Copyright The Financial Times Limited 2018. All rights reserved.

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