Premier Oil’s (LON:PMO) plans to tap investors through a bond issue is the latest sign that in current markets oil firms are having to look at a diverse range of financing options.
Following the lead of North Sea focussed EnQuest – which raised £500mln from retail bonds this year - FTSE 250 explorer and producer (E&P) today begun marketing bonds to both ‘wholesale’ and retail investors.
The bonds, which have a minimum investment of £2,000 and will be tradable, will pay 5% interest and mature in 2020.
"We are delighted to announce the launch of Premier's debut sterling bond which will enable Premier to diversify its sources of debt finance,” said chief executive Simon Lockett.
Barclays, Lloyds and Canaccord Genuity are running the bond issue, and it is expected that the book will close on December 6. Bonds will also be available via ‘authorised distributors’ such as stockbroking firms Killik & Co, Redmayne Bentley, Brown Shipley, Smith & Williamson and Selftrade.