Premier Oil extends exchange offer for 2.875% convertibles by one day; holders tender 98% of bonds

By Susanna Moon

Chicago, Oct. 26 - Premier Oil plc said it extended the exchange offer for its $250 million of outstanding 2.875% guaranteed convertible bonds due 2014.

Holders had until noon ET on Oct. 26 to tender in exchange for new 2.5% guaranteed convertible bonds due 2018. The offer was extended from noon ET on Oct. 25.

As previously noted, 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.

Settlement is still slated for Nov. 1. The offer began on Oct. 19.

As of the most recent deadline, holders had tendered $245 million nominal amount, or about 98%, of the bonds for exchange.

The company extended the offer by one day to allow remaining holders to participate in the offer, according to a company press release.

After the exchange offer, the company plans to call any remaining bonds at par.

As noted before, 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 was conditioned on a minimum tender of $100 million bonds, which has been satisfied.

The objective of the exchange offer was to extend the maturity date of the convertible bonds and, at the same time, obtain an improved coupon and conversion price, according to a previous 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) were 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) was 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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