Premier Oil21 Discussion Threads

[spittingbarrel] 12/7/2017 14:57

Can anyone confirm the coupon and maturity date of this bond now?

[edwardt] 16/6/2017 08:32

agree steve - good summary for everyone. it strikes me that is one hell of a return in this world. why own the equity if you can get that and be higher up in the capital structure...

[steve73] 16/6/2017 02:08

The bonds will now pay 6.5% of par value. If you buy now at c. 84p you're actually getting 6.5/.84 or 7.7% interest. Then at maturity, the bond is redeemed at par, so you make a further 16/.84 or 19% capital growth. The total yield will be around 50%, or c. 10.5% per year.... the gross yield to maturity, or gross residual yield.

AIUI, any warrants received for bonds held in an ISA account will need to be transferred into a standard account. But I wouldn't worry about it too much, at the current share price, the warrants won't actually be worth much... my guess is around 0.25% of bond value, so if you've got say 10,000 the warrants will only be worth about 25 GBP.

btw, I did notice that the higher rate interest will be paid from 15th May but which wasn't included in the 11-Jun payment, so there should be 27 days owing from the last period... worth an extra 0.11%.

[lonrho] 15/6/2017 13:50

They mean yield to maturity including income and capital gain.

[chdaow] 15/6/2017 13:48

"the bond is now 10%" not sure what is mean't by this.

From what I've read retail bond holders will now get 6.5% (instead of 5%) with a maturity date of the bond of 2021.

However I'm not certain either the synthetic warrants or the equity warrant can be held in an ISA.

[dimpkins] 15/6/2017 12:38

Agree edwardt

[edwardt] 15/6/2017 12:00

lots of retail here who obviously getting spooked by the complexity of the corporate action and think easier to dump. the warrants are a freebie, you are getting a one off fee and a rise in coupon. the bond is now 10%+ gry. Unless oil collapses from here that is a reasonable return profile imo.

[chdaow] 15/6/2017 11:36

I'm probably going to sell also...

[dimpkins] 15/6/2017 11:31

looks like a big seller around today

[steve73] 14/6/2017 16:23

I think there was mention in the discussion in your link about needing to hold the warrants outside of an ISA... I didn't really take much notice of that bit as it's not relevant to me..

[bsharman3] 14/6/2017 15:52

Hi. I think i'll probably go for the equity warrants also. Do you know whether these can be held in and traded in an ISA? Currently i hold the bonds in my ISA..

[steve73] 14/6/2017 15:13

Some useful discussion in that fixedincomeinvestor link - thanks.

Not sure I totally understand the synthetic warrants though, so I'm going for the normal ones - which I do understand (I think).

Has anyone calculated exactly how many warrants Retail Bond holders are entitled to?

AIUI, there are 90MM warrants for all the debt holders (excl. the Retail & convertible bonds). RB's are entitled to the same on a pro-rata basis. (CB's got a lot more).
It's not clear whether the 90MM is pro-rata'd based on actual debt or on the debt limit.

Since the RB's are priced in GBP, and the bulk of the rest of the debt is in USD, the pro-rata amount could be influenced a little by the GBP/USD FX (which is all over the place at the moment).

My best guess is that we'll get one warrant for every 28 bonds held....

Does anyone else have any ideas...?

[bsharman3] 14/6/2017 14:45

hxxp://www.fixedincomeinvestor.co.uk/x/forum.html#/discussion/419/premier-oil-refinancing

[bsharman3] 14/6/2017 14:43

apparently H-L are working on an email to their clients at the moment. I have found out that:

equity warrants can be converted into equity at set future dates and synthetic warrants into cash at set future dates.

not sure which is best though... we need an expert!

[steve73] 14/6/2017 14:30

The only option I have is to accept the scheme of arrangement... no option on Warrants or Synthetic Warrants alternative... edit... OK, having accepted I need to e-m my on-line broker if I want the Synthetic variants.

Interest payment received today.

I note also that once the SoA is engaged that the higher interest rate is payable from 17th May

[dmk1198] 14/6/2017 14:22

I'm confused to

[bsharman3] 14/6/2017 14:20

I'm struggling to understand the corporate action and my broker didn't understand it either....
Do you know what the default is ?

I don't know what an equity or synthetic warrant is - I'm hoping someone can explain to a simpleton what they are and help me to understand what to do!


Thanks,

[cerrito] 14/6/2017 13:53

Mine came in on Monday

[ditchsid] 14/6/2017 12:30

Haven't received half year interest yet. Anyone else got the same problem?

[ditchsid] 14/6/2017 12:25

I've gone for warrants too. Hope I've done the right thing.

[nitnia] 14/6/2017 09:13

I've opted for the warrants as I think I understand what I am getting with those as opposed to the synthetic fee thing which I can't understand but I would guess is economically the same.

[bsharman3] 14/6/2017 09:00

I'm not sure what to do? Can anyone help - I need to respond to the corporate action..

[steve73] 31/5/2017 15:13

Refinancing (very) slowly coming together....



Full details are on the PMO website in a lovely compact, easy to read and understand, 196 page, legal tome...

[edwardt] 03/2/2017 08:39

not sure why these have not gone up more.

[edwardt] 03/2/2017 08:15

got to be happy with that . the 1.5% increase on a six month maturity has to attract some new buyers here.... looks like we have not denigrated the security too.