North Sea operator Premier Oil today announced that its private lenders had agreed to the terms of its long-awaited debt refinancing.
London-listed Premier, which has debts of more than £2billion, said lenders had agreed to a long form term sheet, while convertible bondholders had also approved revised conditions.
“Revised financing documentation will now be finalised with completion of the refinancing currently anticipated by the end of May 2017,” Premier said in a statement.
The agreement, which took months to hammer out, is expected to create headroom by preserving Premier’s existing facilities, while giving lenders a “comprehensive security package”.
It will give more than 40 different lenders a say over the sanctioning of new projects at Premier.
Tony Durrant, Premier’s chief executive, said: “The agreement of the long form term sheet with representatives of our private lenders marks a significant milestone for us.
“We are grateful for our lenders’ continued support, which reflects the high quality nature of our asset base, the strong recent operating performance and our plans to deliver value for all of our stakeholders.”
Premier said it would look to invest in its unsanctioned projects “with due regard to the commodity price environment”.
Premier’s portfolio of uncommitted projects includes Tolmount, one of the largest gas discoveries in the southern North Sea in recent years.
The firm bought its 50% stake in Tolmount from Germany’s E.ON last year.
Premier flagship Solan field west of Shetland achieved first oil last April after long delays, while Catcher is expected to come on stream this year.
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