Premier Oil refinancing deal on track as holders enter lock-up agreement

Premier Oil said on Tuesday that holders of more than 75% of its $245m convertible bonds have entered into a lock-up agreement, which commits them to vote in favour of the proposed refinancing on the terms of that agreement.

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

Peel Hunt said: "The 75% level is significant as it represents the majority required to ensure that the amendments can be passed without the need for a bondholder meeting."

Back in February, Premier said the refinancing would provide a solid foundation for it to deliver its strategic plans through preserving the group's debt facilities, resetting financial covenant headroom and extending its debt maturities to 2021 and beyond.

In return, it said lenders would receive a revised security and covenant package, enhanced economics and certain governance controls.

At 0807 BST, the shares were up 1.7% to 63.66p.