Premier Oil21 Discussion Threads

[steve73] 05/10/2018 11:51

All the debt holders needed to be "sweetened" to approve the refinancing since the Co. was exceeding its covenants.. and could easily have been wound-up.

The sweetener for the bondholders was an extra 1.5% pa to maturity plus the warrants. In fact all the debtholders had a similar deal.. except the convertible bondholders who managed to get their conversion price reduced about 7 fold (causing massive dilution), AND 5x as many warrants as everybody else.

Things are looking much better now with debt reducing, and income increasing, so we should get within covenant levels, and the equity share price should now increase.

NAI, DYOR, etc..

[a0148009] 05/10/2018 11:06

Steve - I am confused PMO bonds issued Dec. 2013 Coupon 5%.
August 2017 coupon increased to 6.5% also with equity warants of 333 per 10000 bonds attached at no cost.
The average yield from 2013 to maturity 2021 is circa 5.7%.
Those who bought after cupon increased yield earn 6.5% excluding value of warrants.

The hike in the coupon was a KO rise with debt of 2.5 billion at the time.

[steve73] 02/10/2018 02:30

The currency risk (or the interest rate rise threat) would affect both PMO & ENQ bonds the same way... which is not what we're seeing.
so.. PMO1 >> PMO (as PMO strengthens)
or.. PMO1>>ENQ1 (as investors who WANT fixed interest now feel comfortable with ENQ risk and seek the much higher return. (8.5 vs 5.5% YTM)

[hpcg] 01/10/2018 21:41

Also for non-Sterling investors, if there are any, possible currency risk.

[11_percent] 01/10/2018 20:28

Steve73/hpcg,

I think you both have a point.

My only worry is that Martin Armstrong is predicting a rapid rise in interest rates to 10% at some point.

[hpcg] 01/10/2018 17:28

My thoughts are a retail preference for the equity, with bond investors still a bit cautious.

[steve73] 01/10/2018 17:03

Hi 11%...
I'm only guessing here, but since the PMO trades at a premium to par (and it has a lower coupon rate than ENQ), whilst ENQ is still at a reasonable discount, the YTM for ENQ is MUCH better then here.

With the ENQ RI, and a more successful future looking likely, perhaps a few BHs here have moved over to the ENQ1 bond.

[11_percent] 01/10/2018 16:51

Whats happening guys, sinking lke a brick.......while ENQ1 is going up.

[my retirement fund] 09/5/2018 08:31

This effect is commonly known as the Trump bump.

[hpcg] 08/5/2018 13:37

Now above par. Guess I now have to keep an eye on the YTM in case a sale is warranted. It is a long way from that at this time of course, I'm very happy with just collecting the coupon for now. Should it get to 3.5% or something like that I have something to consider.

[ditchsid] 08/4/2018 08:36

I'm with X-O.co.uk. Went through OK

[steve73] 07/4/2018 05:18

I'm having real problems being able to exercise the warrants I received as part of the restricting.

I'm with I-dealing, who normally respond very quickly to questions/concerns, but on this point they are totally ignoring my many e-mail...

Has anyone else had problems with the warrants, or indeed, has anyone managed to successfully exercise them... and who with.?

Thanks.

[spittingbarrel] 13/12/2017 12:08

Thanks Steve

[steve73] 13/12/2017 11:14

IIRC, this dividend was from the refinancing date until now.. i.e. Jul 28th.
The bit from the previous 6 monthly date upto the 28th was paid on completion of the refinancing.

I think this all got discussed on this thread at the time - if you go back a few pages..

[spittingbarrel] 13/12/2017 09:35

I've just noticed the same. I'm with iDealing.

[my retirement fund] 13/12/2017 09:15

I seem to have received a dividend of 2.42 pence not 3.25 pence, is there a reason why ?

[my retirement fund] 09/11/2017 16:37

I think these will be due another leg up soon imo

[grahamg8] 18/10/2017 16:59

That looks like a leg up all right. Upward trend has been in place for while. 'Normal' commercial debt financing returns suggest these should be about 107p to give a YTM of around 4.5%. Still a fair way to go.

[my retirement fund] 03/10/2017 10:05

I think these are due a leg up soon. No better quote out there than 94.25p right now!

[hiddendepths] 28/9/2017 11:31

I also reached that conclusion sb. Risks here have fallen back significantly with one thing and another so I think the yield is higher than it should be, possibly in part because the rise in coupon to 6.5% has not been noticed by some. Bought a few this morning.

[spittingbarrel] 26/9/2017 09:37

PMO1 starting to look very cheap with the current oil price. The ords are on the move but nothing in the bonds yet.

[steve73] 09/9/2017 02:57

I think they expire sometime in 2020, or possibly later... I'm not worried (yet) that my broker still hasn't worked out to exercise them...

[steve73] 07/9/2017 05:06

thanks graham... a much better explanation approach than I took..