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* Premier to raise $300 mln of new equity
* Reports $672 mln H1 loss after write-downs
* Shares down 20%
(Adds detail, shares)
By Ron Bousso
LONDON, Aug 20 (Reuters) - Premier Oil has agreed
terms for a long-term refinancing of its debt facilities, it
said on Thursday, including $300 million of new equity and an
extension to its credit maturities, after swinging into a
first-half loss due to weak crude prices.
The British company has been struggling with debt since the
oil slump of 2014. The recent plunge in crude prices due to the
COVID-19 pandemic forced the firm to secure all possible
finances and delay repayments.
Premier's shares were down 20% by 0852 GMT, the lowest since
May 15.
The company said $2.9 billion of gross debt facilities would
be refinanced with non-amortising facilities, extending the
maturities from May 2021 to March 2025. All interest rates on
its debt would be set at 8.34%.
Premier's net debt had shrunk to $1.97 billion by the end of
June from $1.99 billion at the end of December, the company
said. Premier's market capitalization stood at around $414
million on Thursday.
The company confirmed it would raise $230 million to fund
the proposed purchase of some of BP's North Sea fields.
It said it would also raise a further $300 million of new
equity to reduce debt, of which $205 million will be
underwritten by creditors who will convert debt to shares.
The new arrangement "puts us in a strong position for
long-term refinancing and to reset the balance sheet," Premier
Oil Chief Executive Tony Durrant told Reuters.
"We are simultaneously increasing production and cash flow
and reducing debt," he added.
The company, which produced 67,300 barrels of oil equivalent
per day in the first half of 2020 against 84,100 boed a year
earlier, is planned to lift output to 100,000 boed by mid 2020
thanks to field start-ups and the BP acquisition, Durrant added.
Premier reported a net loss of $672 million in the first
half following $632 million in non-cash write downs, against a
profit of $121 million in the first half of 2019.
The company also reaffirmed its expectation that it would be
free cash flow positive for full-year 2020.
(Reporting by Aby Jose Koilparambil and Pushkala Aripaka in
Bengaluru; Editing by Amy Caren Daniel and Jan Harvey)
