Tuesday 15 September 2020 6:23 pm

Premier Oil shares jump on Chrysaor refinancing talks

Shares in Premier Oil rose 7.9 per cent today after the firm confirmed that it was in talks over a potential refinancing alternative with fellow North Sea company Chrysaor.

Last month the FTSE 250 firm outlined the main terms of a deal with its creditors to extend the maturities on its £2.2bn debt pile until 2025 and also raise £230m in equity.

Read more: Premier Oil shares crash as it swings to first-half loss

Alongside a loss for the first half of $672m, the deal sent the company’s shares tumbling. 

In a statement this afternoon, the firm said: “Premier notes this afternoon’s press speculation and confirms that it has been in discussions with a number of third parties, including Chrysaor, regarding alternative forms of transactions to secure the long term refinancing of the Group’s debt facilities.  

“To date, terms of the transactions discussed do not, in Premier’s opinion, provide better outcomes for either its shareholders or creditors than those proposed under the heads of terms announced on 20 August.

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“Discussions on such transactions continue to be explored, in the best interests of all of Premier’s stakeholders, but there can be no certainty that these discussions will reach agreement.”

It added that the refinancing was subject to a number of matters, including creditor and shareholder approval, as well as the equity raise.

Premier’s debt pile has hung over the company for most of the year, with a public dispute with its largest creditor Asia Research and Capital Management (ARCM) only settled back in June.

Read more: Premier Oil shares slide as explorer hits reduced production guidance

ARCM had opposed Premier’s plan to acquire two fields from oil giant BP for an initial sum of $625m, although this has now been reduced to $230m.

Chrysaor declined to comment.

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