Premier Oil adds final lock-up for Schuldschein loan in restructuring

By Susanna Moon

Chicago, March 15 – Premier Oil plc said it obtained the final lock-up agreement for the Schuldschein loan on Wednesday, agreeing to the terms of the company’s proposed refinancing.

As a result, the lock-up agreements are now effective for the private lenders, consisting of the revolving credit facility, term loan, U.S. private placement notes and Schuldschein loans, and the convertible bondholders, which means they have committed to vote in favor of the refinancing, according to a company update.

The company had said on March 9 that it entered into lock-up agreements with the needed majority of each of the lenders to its revolver, term loan and U.S. private placement notes.

In total, the amount represented 87% by value of the lenders who have agreed the terms of the proposed refinancing and plan to vote in favor of the amended terms.

Premier said on Feb. 3 that it will refinance under agreements with its private lenders to a long form term sheet, its convertible bondholders and under proposed amended terms to its retail bonds.

As a result of the lock-up, the group will have the needed support to begin the Scottish Court schemes of arrangement to implement the amendments. The court schemes require a vote of more than 75% by value of the revolver, term loan, private placement notes and retail bonds represented, which is less than the percentage represented under the lock-up agreements.

As announced March 1, Premier reached an agreement with an ad hoc committee of bondholders for amending the terms to its $245 million 2.5% convertible bonds.

Holders agreed to extend the maturity date of the convertibles to May 31, 2022 and to keep the coupon at 2.5%, to be paid, at the election of the company, either in new shares or from the proceeds of the sale of new shares or in cash.

Premier is a London-based exploration and production company with oil and gas interests in the North Sea, South East Asia and in the Middle East, Africa and Pakistan region.

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