As Premier Oil PLC (LON:PMO) advances to complete its refinancing the company today confirmed that the new conversion price has now been set for its convertible bonds.
Consistent with the recently agreed amendment the company set the conversion price to 74.71p per share, which equates to a 20% premium over the average share price between March 1 and March 22 (the exchange rate on conversions is fixed at US$1.228 to the pound).
It represents another step to Premier sealing its vital refinancing.
The completion is expected to be something of a threshold moment for Premier Oil and, according to some analysts, it will act as a turning point putting focus on growth and organic debt reduction.
“The portfolio provides flexibility to outperform our forecasts and we see potential for a share price re-rating as rising production and falling opex are reflected in improved cash flows. We also flag near-term exploration upside,” Peel Hunt analyst James Carmichel said in a recent note.