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question about Premier Oil Bonds?
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- Lemon Quarter
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Re: question about Premier Oil Bonds?
Just noticed this, Premier Oil are now free of their convertibles:
https://www.londonstockexchange.com/exc ... 78901.html
Just obtained an on-line clean bid price of 101.6, reducing YTM to 5.85%. Just 2.5 years to maturity, so still happy to hold at that yield.
https://www.londonstockexchange.com/exc ... 78901.html
Just obtained an on-line clean bid price of 101.6, reducing YTM to 5.85%. Just 2.5 years to maturity, so still happy to hold at that yield.
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- Lemon Quarter
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Re: question about Premier Oil Bonds?
Upbeat trading statement today: https://m.londonstockexchange.com/excha ... 75826.html
Ords up 7%, bonds up 0.25%. Tempted to trim and buy a few more Enquest.
Ps, something odd in this thread. We appear to have lost some postings.
Ords up 7%, bonds up 0.25%. Tempted to trim and buy a few more Enquest.
Ps, something odd in this thread. We appear to have lost some postings.
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- Lemon Quarter
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Re: question about Premier Oil Bonds?
Significant resource upgrade at Zama following conclusion of appraisal campaign.
https://m.londonstockexchange.com/excha ... 26756.html
Ords up about 2.5%, PMO1 slightly ahead, trading above par, but with less than 2 years to maturity, upside is limited.
https://m.londonstockexchange.com/excha ... 26756.html
Ords up about 2.5%, PMO1 slightly ahead, trading above par, but with less than 2 years to maturity, upside is limited.
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- Lemon Quarter
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Re: question about Premier Oil Bonds?
For some reason I have not been able to fathom out, the bonds dropped in price a few pence on 16/12, despite increasing oil prices and a rise in the price of the ords. Picked up a few more this morning at 99.85, YTM 6.6%.
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- 2 Lemon pips
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- Lemon Quarter
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Re: question about Premier Oil Bonds?
Thanks for the link, very interesting. If true, the hedge funds hold blocking positions on some of the bonds and say they will block refinancing, that leaves PMO with a number of options. These include alternative financing to repay bonds as they mature (hedgies cannot block that), disposal of assets, and potentially equity raise/rights issue. None of that lot are detrimental to bond prices, but are not good for shareholders. In these circumstances I would have expected share prices to drop and bond prices to rise, yet the opposite has happened!
Definitely something to keep an eye on.
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- Lemon Slice
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Re: question about Premier Oil Bonds?
hiriskpaul wrote:For some reason I have not been able to fathom out, the bonds dropped in price a few pence on 16/12, despite increasing oil prices and a rise in the price of the ords. Picked up a few more this morning at 99.85, YTM 6.6%.
I perceived it was delayed reaction to Tullow's share price falling by 70% and someone realised they were carrying a bit more risk than they thought, so the article is very intesting.
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- Lemon Quarter
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Re: question about Premier Oil Bonds?
These have bounced back. Quoted 101.4229 for 10k nominal this morning. Did not go ahead.
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- Lemon Half
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- Lemon Pip
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Re: question about Premier Oil Bonds?
hiriskpaul wrote:These have bounced back. Quoted 101.4229 for 10k nominal this morning. Did not go ahead.
Hi Paul,
Apart from the retail bond 6.5% May 2021 , PMO1, do you have a breakdown of other debt issued by Premier.
From a cursory flick over of the co website i could only find reference to the above " retail bond ".
Mkt reports that "Premier have $2bn of debt " , but i cannot find a listing of securities.
Regards,
Swan
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- Lemon Quarter
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Re: question about Premier Oil Bonds?
Swanmore22 wrote:hiriskpaul wrote:These have bounced back. Quoted 101.4229 for 10k nominal this morning. Did not go ahead.
Hi Paul,
Apart from the retail bond 6.5% May 2021 , PMO1, do you have a breakdown of other debt issued by Premier.
From a cursory flick over of the co website i could only find reference to the above " retail bond ".
Mkt reports that "Premier have $2bn of debt " , but i cannot find a listing of securities.
Regards,
Swan
Hi Swan, the only outstanding listed bond is the retail one (£150m). The rest of the debt comprises of bank finance and privately placed notes.
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- Lemon Quarter
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Re: question about Premier Oil Bonds?
FWIW I sold half my position in these today at 104.21 (ytm 3.3%). At that yield I can get better returns for the risk elsewhere.
The other half may go soon, but still holding the warrants.
The other half may go soon, but still holding the warrants.
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- Lemon Slice
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Re: question about Premier Oil Bonds?
Over on advfn it's perceived the bond has been extended to Nov 2023 with a coupon of 8.1% and a further payment for agreeing to extend the bond from the maturity date of May 2021 (which from memory ws previously extended from an earlier date and a lower coupon).
I don't hold and it's currenlty too risky for me and thus I'm not incentivised enough to read the original documents myself. I'm not sure if this post is helpful or not.
I don't hold and it's currenlty too risky for me and thus I'm not incentivised enough to read the original documents myself. I'm not sure if this post is helpful or not.
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- Lemon Pip
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Re: question about Premier Oil Bonds?
From what I can make out the coupon is 6.5% until May 2021 and then 8.1% from May 2021 until Nov 2023. Holders also get an amendment fee of .25% and a repayment fee of .75%. I'm not sure when the amendment fee gets paid.
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- Lemon Quarter
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Re: question about Premier Oil Bonds?
Gan020 wrote:Over on advfn it's perceived the bond has been extended to Nov 2023 with a coupon of 8.1% and a further payment for agreeing to extend the bond from the maturity date of May 2021 (which from memory ws previously extended from an earlier date and a lower coupon).
I don't hold and it's currenlty too risky for me and thus I'm not incentivised enough to read the original documents myself. I'm not sure if this post is helpful or not.
Damn! This is what happens when making decisions when jet lagged. Thanks for the update though, must look into this properly tomorrow.
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- Lemon Quarter
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Re: question about Premier Oil Bonds?
Surerera wrote:From what I can make out the coupon is 6.5% until May 2021 and then 8.1% from May 2021 until Nov 2023. Holders also get an amendment fee of .25% and a repayment fee of .75%. I'm not sure when the amendment fee gets paid.
Where are you seeing that? The Retail Bond Supplemental Deed says 8.85% from the “A&E Effective Date”, which I have not figured out yet.
Edit: A&E Effective Date seems to be "late March".
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- Lemon Pip
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Re: question about Premier Oil Bonds?
hiriskpaul - It's difficult to find exact info at the moment, 8.85% sounds like the 8.1% plus 0.75% repayment fee. I might email the company tomorrow to get clarification.
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- Lemon Quarter
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Re: question about Premier Oil Bonds?
Surerera wrote:hiriskpaul - It's difficult to find exact info at the moment, 8.85% sounds like the 8.1% plus 0.75% repayment fee. I might email the company tomorrow to get clarification.
The scheme documents are available here: https://www.lucid-is.com/premieroil/
You have to register (for free) to gain access, but all the details are there, including the Retail Bond Supplement which contains the new terms. There is also a summary on page 583 of the Explanatory Statement document containing some of the new terms of the various senior and super senior notes, including the retail bond. I was looking at this last night, but not getting very far as I was knackered after lack of sleep on a night flight. Bit busy now, but hopefully will have time to look at this again later today.
I am definitely not selling any more until I have digested this lot. My brief calculations yesterday, which could well be wrong the state I was in, puts the YTM at around 7.5%, based on a mid price of 104.5, but that excludes the fees. Based on that, I suspect it would be better to sell after the schemes have been voted through and the fees paid. There is of course some implementation risk here, but the RNS indicates they have sufficient backing for this not to be a problem.
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- Lemon Pip
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Re: question about Premier Oil Bonds?
hiriskpaul - I've just had a brief summary from the company as follows:
Impact on the Retail Bond
Maturity
– Extend the maturity from May 2021 to November 2023
Enhanced economics
– 2.35% coupon increase to 8.85% (harmonises interest rates across the debt classes) – 0.25% amendment fee, payable when the amend and extend becomes effective
– 0.75% repayment fee, payable as the retail bond is repaid and cancelled
Extension effective when:
– The Schemes are sanctioned by the Court
– New equity is raised; and
– One of the Tolmount Acquisition or the Andrew Acquisition completes
Other key changes
– Security: unchanged
– Minor amendments: to provide Premier with increased operational flexibility
Impact on the Retail Bond
Maturity
– Extend the maturity from May 2021 to November 2023
Enhanced economics
– 2.35% coupon increase to 8.85% (harmonises interest rates across the debt classes) – 0.25% amendment fee, payable when the amend and extend becomes effective
– 0.75% repayment fee, payable as the retail bond is repaid and cancelled
Extension effective when:
– The Schemes are sanctioned by the Court
– New equity is raised; and
– One of the Tolmount Acquisition or the Andrew Acquisition completes
Other key changes
– Security: unchanged
– Minor amendments: to provide Premier with increased operational flexibility
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- Lemon Quarter
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Re: question about Premier Oil Bonds?
Surerera wrote:hiriskpaul - I've just had a brief summary from the company as follows:
Impact on the Retail Bond
Maturity
– Extend the maturity from May 2021 to November 2023
Enhanced economics
– 2.35% coupon increase to 8.85% (harmonises interest rates across the debt classes) – 0.25% amendment fee, payable when the amend and extend becomes effective
– 0.75% repayment fee, payable as the retail bond is repaid and cancelled
Extension effective when:
– The Schemes are sanctioned by the Court
– New equity is raised; and
– One of the Tolmount Acquisition or the Andrew Acquisition completes
Other key changes
– Security: unchanged
– Minor amendments: to provide Premier with increased operational flexibility
Thanks, that chimes with what I thought from yesterday. The only thing I was slightly unsure about were the precise terms the repayment fee was paid. For example, would it be paid if/when the terms are amended again and maturity extended? Overall this is a minor detail though, just £75 for each £10k nominal.
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