Premier Oil expects to raise at least £100 million in a bond offer scheduled to close on 6 December. The FTSE 250 oil and gas company, with interests in the Falkland Islands, the North Sea, and South-East Asia, said its 5% sterling bonds auction has already built a book value of at least £100 million.
The offer is one of various possible future issues under Premier's £500 Euro Medium Term Note Program, which was established on 18 November and enables Premier to issue retail or wholesale notes in various markets and currencies.
The company, which has a market cap of £1.8 billion, recently signed a farm-out deal with Falkland Oil & Gas (FOGL) and its drilling partner Rockhopper Exploration (RKH) to help with exploration in the Falkland Islands Northern Basin.
Premier said the offer period is due to close at 12:00pm on 6 December, although it and the joint lead managers, Barclays and Lloyds Bank, retain the right to close the offer period early and at short notice.
Simon Lockett, chief executive of Premier Oil, said: We are pleased to be offering a retail bond as our first issuance under our new Euro Medium Term Note Program, and with the initial demand from investors. This will enable Premier to diversify its sources of debt funding and extend the maturity profile of its debt ahead of the refinancing of Premier's main bank facilities, which mature in 2015.
This will enable Premier to diversify its sources of debt funding and extend the maturity profile of its debt ahead of the refinancing of Premier's main bank facilities which mature in 2015.