Premier Oil offers new 2.5% notes in exchange for 2.875% convertibles

By Susanna Moon

Chicago, Oct. 19 - Premier Oil plc began an offer to holders of its outstanding $250 million 2.875% guaranteed convertible bonds due 2014 to exchange their notes for new 2.5% guaranteed convertible bonds due 2018.

Holders will receive an equal amount of new bonds for each $200,000 principal amount of bonds tendered for exchange and in integrals of $1,000 after that, according to a company press release.

The exchange offer will end at noon ET on Oct. 25. Settlement will occur on Nov. 1.

The new bonds will have a conversion price of $7.00, compared with the existing bonds that have a conversion price of $6.69. Premier will be guarantor of the new bonds, which will be issued by Premier Oil Finance (Jersey) Ltd.

The exchange is conditioned on a minimum tender of $100 million bonds.

The objective of the exchange offer is to extend the maturity date of the convertible bonds and, at the same time, obtain an improved coupon and conversion price, according to a company press release.

Barclays Bank plc (+44 207 773 8575, attn: liability management, e-mail: eu.lm@barclays.com) and RBC Europe Ltd. (+44 207 029 0266, attn: syndicate, e-mail: duncan.smith@rbccm.com) are the dealer managers.

Deutsche Bank AG, London Branch (+44 207 547 5000, fax +44 207 547 6149/5001, attn: trust and securities services, email: xchange.offer@db.com) is the exchange agent.

Premier is a London-based independent 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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