Premier Oil shares rise as it confirms it is one step closer to finalising its refinancing package

Courtney Goldsmith
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Shares rose after Premier Oil revealed it is on track to complete its refinancing (Source: Getty)

North Sea oil producer Premier Oil has a big enough majority to finalise its refinancing package, the company announced today.

Shareholders representing more than 75 per cent by value of its $245m (£191.3m) convertible bonds have entered a so-called lock-up agreement, committing themselves to vote in favour of the proposed refinancing agreement.

"This is a sufficient majority to pass the required resolution to implement the amended terms of the convertible bonds," said Premier Oil in a statement.

Shares in the company lifted 3.36 per cent at 64.34p in morning trading.

Premier's acquisition of E.On's North Sea assets last year via debt funding alongside low commodity prices caused the company to enter a prolonged period of refinancing discussions with lenders.

The firm has been inching towards completion of the long-awaited deal. In March it announced convertible bondholders had agreed to amended terms.

At the end of 2016, Premier said net debt stood at $2.8bn.

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