29th Nov 2013 10:29
LONDON (Alliance News) - Premier Oil PLC Friday said that, based on the progress of its ongoing sterling bond issue, the total amount of bonds to be issued will be at least GBP100 million.
The exploration and production company said the offer, available to both wholesale and retail investors, is the first of various possible future issues under Premier's GBP500 million Euro Medium Term Note Programme, which was established on November 18.
The bonds will pay a fixed rate of interest of 5% a year, payable twice yearly on June 11 and December 11, with the first coupon payment being made on June 11, 2014. The bonds will mature on December 11, 2020 and are guaranteed by certain Premier Oil operating subsidiaries.
The company said the process will enable it to diversify its sources of debt funding and extend the maturity profile of its debt ahead of the refinancing of Premier's main bank facilities which mature in 2015.
Premier Oil shares were flat at 311.70 pence Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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