Premier Oil gets creditor approval for loan extension, bridge loan

By Sarah Lizee

Olympia, Wash., Feb. 12 – Premier Oil plc said the relevant majorities of its super senior scheme creditors and senior scheme creditors have approved related funding arrangements, extension of its credit facilities and proposed asset acquisitions.

Creditor meetings for the schemes were held on Feb. 12.

Of the super senior scheme creditors, 86.81% in value of those voting approved the schemes with 99.3% in value voting, according to a press release.

Of the senior scheme creditors, 83.86% of those voting approved the schemes with 96.51% in value voting.

The schemes remain subject to approval by the Scottish Court of Session with the sanction hearing currently scheduled for March 17.

As previously reported, Premier is planning an extension of its existing credit facilities to Nov. 30, 2023 and may get a $300 million bridge facility for some proposed asset acquisitions.

The acquisitions include the purchase of the Andrew area and Shearwater assets from BP for $625 million, and an additional 25% interest in the Premier-operated Tolmount area from Dana for $191 million plus contingent payments of up to $55 million.

The proposed acquisitions would be funded via a $500 million equity raise, which has been fully underwritten on a standby basis, existing cash resources and, if required, the bridge facility.

Completion of all three acquisitions is expected to occur by the end of the third quarter of 2020.

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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