Premier Oil21 Discussion Threads

[bondholder] 13/6/2020 13:27

Anybody had their interest payment yet ?

[cwa1] 08/6/2020 11:07

Morning. Nice to see some traffic on this board. FWIW I bought some(of the bond) when I saw the announcement the other day, as it seemed to improve the risk/reward as T mentions above. I bought it whilst the equity was still in auction but the bond was trading and, kind of, put my money where my mouth was/backed my judgement. As a result I was lucky, and slightly surprised, to pick it up at 72.5p. Hopefully that will be a decent entry point-even though it has come a long way off lows.

[steve73] 08/6/2020 10:10

Hi T... I'm totally in the equity.. unfortunately from much higher still. I'd expect the maturity of these to be extended by a year or two, and possibly a small bonus on the IR, but they should give you a pretty safe return. Equity should do better though IMO. (fwiw).

[tournesol] 08/6/2020 10:00

Hi Steve

I bought some this am. I see the risk/reward as greatly improved vs the situation when the price was in the 30's

T

[steve73] 08/6/2020 09:08

Bonds changing hands at 83-84 this morning..

[stemis] 18/3/2020 12:13

...new operating cost (including leases) guidance of c. $20/boe...

...Assuming a $100m reduction in planned 2020 capex and $35/bbl oil price for the remainder of the year, the Group would expect to be broadly cash flow neutral in 2020...

...The Group retains significant liquidity. It has unrestricted cash of $135m and undrawn facilities of c.$330m, as at the end of February...

[jimmyinoz1] 18/3/2020 11:53

The bond is now trading at 33p. Presumably this represent the risk of default due to the price of oil. Does anyone know the production cost Premier incur? Working out the 'gamble' that they can pay back 500m in 16 months. Interested o hear views.

[my retirement fund] 17/2/2020 22:22

Surprised this has risen further

[pimsim] 08/1/2020 12:03

Ok thanks, looks a bit better

[stemis] 08/1/2020 09:05

Holders get the 0.25% and 0.75%, not pay it...

[pimsim] 08/1/2020 08:39

I think I must be missing something here given the price has climbed to 106p, are we saying (guessing?):

6.5% until May21
8.1% from May21 to Nov23
-0.25% at some point?
-0.75% on last payment

At 106p, I make that a yield to maturity of less than 5%?

[stemis] 07/1/2020 16:23

We'll need to see the details in the circular but that does seem to be the case, together with a 0.25% fee for agreeing to it, plus a 0.75% fee on (final repayment?).

[my retirement fund] 07/1/2020 15:02

So these will now have a redemption date of 11/2023 and a coupon around 8% ?

[frazboy] 07/1/2020 14:46

Yep, I can’t help but think that this deal looks better for bond holders (when you factor in the increased payments to bond holders and the extra dilution of equity holders) than shareholders but I seem to be on my own in that view.

[stemis] 07/1/2020 14:14

I'm guessing the jump is due to the announcement re PMO acquisition of North sea assets, which includes the comments

extend the maturity of all of Premier's facilities to 30 November 2023;

In return, the lenders will receive enhanced economics including an average margin uplift of 1.6 per cent. over existing pricing, amendment fees of 0.25 per cent. and a repayment fee of 0.75 per cent[1]. The margin uplift will be applied for the period from the extension effective date until the full refinancing. A harmonised interest rate of 8.85 per cent., based on current LIBOR rates, will apply to all Premier's cash credit facilities from the extension effective date.

[lageraemia] 06/1/2020 10:29

Steve quote there includes the premium to par (and the slightly 16+ months left) if you buy now which reduces the yield.

5.4% is none too shabby still

[my retirement fund] 06/1/2020 09:45

Thats wrong. Gross yield here is about 6.4%

[steve73] 06/1/2020 02:02

These retail bonds mature in May 2021, and are currently selling at a little over par.
With just 3 further payments remaining they are giving a gross yield of under 5.4%.

Wonder if they'll look to issue more RB's (or HYNs) as part of the refinancing package, as it's at a much lower rate than much of their other debt, or is there a limit to the proportion of bonds they can issue..?

[lageraemia] 05/1/2020 17:51

The company has said that it's looking to wrap up refinancing in Q1 of this year, and net debt has been slashed in the past 2 years...with the oil proce getting MORE favorable for PMO as of late.

I's say the slight premium to par here is a good sign indeed.

[my retirement fund] 05/1/2020 10:09

Are they going to be able to pay these back this year ?

[11_percent] 22/11/2018 21:30

Ok, but they are still going down.

Thinly traded, and most deals are sells.

[steve73] 17/11/2018 03:41

These bonds are holding remarkably well - compared to the equity.

ENQ1 bonds are struggling a little probably due to the risk of toggling back to PiK

[11_percent] 19/10/2018 10:01

Both PMO1 and ENQ1 slipping now.