Premier Oil21 Discussion Threads

[voci] 11/2/2021 11:23

This from Hargreaves Lansdowne message.

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If you take the default mixed cash and shares you have the option to buy additional Harbour Energy shares at a price of USD0.1144 per share. There are a limited number of shares available so you may not receive all the shares you apply for.
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If my maths is right with the current $ exchange rate at 1.38p that means for bondholders who take the cash/shares option there is the opportunity to buy the equity at around 8.3p

Should I be putting my name down for as many as I can get?

[voci] 11/2/2021 11:11

Steve,
This from Hargreaves Lansdowne message sent to me.
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"We don’t know the exact amount of cash and stock you’ll get as this will depend on what cash is left after payments are made to higher priority creditors. Premier Oil have provided an example showing that if you held £10,000 nominal value of notes you might get a payment of USD8,809.00 and 15,765 Harbour Energy shares."

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I think the phrase "nominal value" answers your question.

Nominal Value - the price of a share, bond, or stock when it was issued, rather than its current market value.

[steve73] 11/2/2021 06:33

cat... is that 10k # of bonds or 10k GBP's worth at today's price..?

[catsick] 11/2/2021 05:56

This is looking pretty good, from the worked example a 10k bond holding will get you 6400 gbp cash accrued interest of another couple of hundred and 15,765 pmo shares worth about 3500 so pretty close to 100 , I managed to buy 150k of these around 70p when all this info was pretty much known so a very easy quick 50% profit ....

[csmwssk12hu] 08/2/2021 14:45

Quicker merger goes through the better then we will see this take off imho dyor

[stemis] 08/2/2021 14:30

I notice on 25 Jan that Premier issued an RNS with the statement

An explanatory note for Retail Bondholders (the "Retail Bondholder Explanatory Note"), which provides Retail Bondholders with, inter alia, further background to the Transaction and information regarding the process and timing for voting on, and making elections in connection with, the Restructuring Plans, is being distributed. The Retail Bond Explanatory Note sets out a number of worked examples (extracted from the Explanatory Statement) to demonstrate, for illustrative purposes and based on certain assumptions, what a Retail Bondholder with a Nominal Value of £10,000 of Retail Bonds might receive depending on whether the Retail Bondholder elects the Equity/Cash Option or the Cash-Out Option.

Has anyone seen this?

Also note that the RNS states

Copies of the Retail Bondholder Explanatory Note and the Explanatory Statement can be obtained from the Group's website at www.premier-oil.com/investors/retail bond or via the Restructuring Plans website www.lucid-is.com/premieroil.

There appears to be nothing on the lucid-is.com site and the premier-oil.com site returns the message "The requested page could not be found"

[dandigirl] 08/2/2021 11:39

A J Bell choices out this morning. Oil over $60. Gone for the equity/cash.

[rooky4] 08/2/2021 09:51

Apparently the default is 'cash and stock'
Can opt for Maximise cash, or Maximise shares

[catsick] 08/2/2021 07:31

I have not had any letters from my broker and suspect I will have to take the default which I hope is max shares

[dandigirl] 07/2/2021 11:20

As usual, still waiting on A J Bell.

They are always behind when it comes to anything a bit complex.

Not that we are fussed as we intend to choose the default option of equity/cash.

[cerrito] 04/2/2021 17:07

I got this from my broker on the conversion scheme for the PMO retail bonds.
I guess all of you have had similar letters.
I do not begrudge so much what I see as the high fees they charge.

Quote
We have also been advised that beneficial owner disclosure is required for retail clients to participate in this
corporate action, these will be disclosed to our custodian who will pass them on to the issuer. These details
include full name and number of shares you hold. You should be aware that our custodian is based in a
jurisdiction outside the EEA. Whilst they are bound by data protection rules in their home state, protection
may differ from that afforded in the EEA. If you are not willing to disclose beneficial owner details you will be
unable to partake in the offer.
There may be the necessity also for bondholders who instruct to complete an account holder letter on a
beneficial owner basis. We are currently researching this with our custodian and will advise you further should
this be the case.
unquote

[dandigirl] 25/1/2021 12:38

PMO1: 82.43 on the LSE website this a.m.

[s2lowner1] 13/1/2021 17:58

Found this on Chrysaor website dated yesterday
hxxps://www.chrysaor.com/downloads/news/210112_GM_update_on_proposed_merger_with_Chrysaor_(Jan%20_2021).pdf

[dandigirl] 12/1/2021 13:24

See that Goldman Sachs think that we could see $65 oil around the middle of the year.

[stemis] 09/1/2021 15:13

If the offer is 75 or 61 p, why is it stable around 79p?

Because the offer isn't 75 or 61p

[dandigirl] 08/1/2021 18:40

xxx: I agree. It is interesting that just before Chrysaor arrived on the scene PMO's CEO published a restructuring proposal based on $55 oil. We now have $55 oil. Of course, not to say it will stay here but given the recent OPEC meeting the chances are good. As bondholders, as indicated above, we, too, will continue to hold and will not vote in favour. Let us hope for improved terms.

[xxx] 07/1/2021 22:00

If the offer is 75 or 61 p, why is it stable around 79p? I'm an ord share holder and fwiw will vote against. It would not surprise me if a fund did the same as the balance of the offer has shifted with the forward curve ie much lower chance of insolvency.

[dandigirl] 05/1/2021 17:52

No. We have decided to hold on for the time being in the hope/expectation that the price of oil stays firm. Not sure what the offer will be but may take some of the shares in the hope of uplift.

[chdaow] 05/1/2021 17:01

It’s a little frustrating that the merger is happening with the maturation date so close at less than five months away.

There also seems to be some confusion as to how retail bond holders positions will be affected.

Now that there has been a fairly decent recovery after the crash in March is anyone considering selling before the merger goes ahead?

[dandigirl] 01/1/2021 17:24

Just had another looksee at the PMO site and found the following:

""""Premier will in due course seek consent from Existing Creditors (including holders of the Retail Bonds) for the Transaction and, in order to support implementation of the Transaction, an extension of the existing maturity date of its debt facilities (including the Retail Bonds) from May 2021 to March 2022, in each case by means of court-approved restructuring plans. Detailed instructions on the actions to be taken by holders of the Retail Bonds in relation to this process will be included in the explanatory statement in respect of the restructuring plans, which Premier expects to be published on or around 26 January 2021"""

I also read:

""""Premier noted in its Announcement dated 6 October 2020 its expectation that the Existing Creditors on average (including certain super senior creditors, who will be repaid in priority to holders of the Retail Bonds and other senior creditors of Premier) will receive a total recovery of approximately 75 pence in the pound in cash at completion of the Transaction for those electing for the partial cash alternative. For those Existing Creditors who elect to take new shares they would have a base cash recovery of approximately 61 pence in the pound (on average across Existing Creditors) with the additional potential value of those shares based on the future valuation of the combined group."""

This suggests approx. 75p in cash or 61p of share value.

Explanatory statement on or around 26/01, as above.

It won't make a jot of difference but I will vote against, especially in respect of the proposal to extend the maturity date of the Retail Bond to 03/22.

Happy New Year everyone.

[dandigirl] 24/12/2020 12:31

I was being a bit silly, really, as while I hope we get the opportunity I don't really know and it probably doesn't matter anyway as I think they have all the votes needed already.

Just a little protest on my part.

We are with A J Bell who normally give the opportunity to choose from various Corporate Action options. Good luck to them in deciphering what is available to bond holders.

[xxx] 23/12/2020 20:34

@dandigirl, presumably you mean when a vote is put to the shareholders or do retail bond holders have to give their assent ?

[dandigirl] 23/12/2020 19:32

We really should not have to try to analyse like this. The document should be clear, after all it's a prospectus!

Likely it won't make a difference but I will feel better voting against when the time comes.