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LONDON, Sept 17 (Reuters) - Premier Oil has received
indicative, non-binding support in excess of a targeted $325
million for a capital increase linked to a debt restructuring, a
source with knowledge of the matter said.
The company needs 75% of its creditors to agree to the
restructuring plans, a threshold it has not yet reached, the
source told Reuters on Thursday. Once the threshold has been
hit, it can start the official bookbuilding process for the
capital raise.
Premier said on Tuesday it was in talks with private-equity
backed oil producer Chrysaor and several other parties on
alternatives to the restructuring and capital raise plan it
announced on Aug. 20.
Premier said last month it was seeking $530 million in fresh
equity, of which existing creditors said they would underwrite
$205 million in a potential debt-for-equity swap, should Premier
find $325 million in fresh equity elsewhere.
The company had a market capitalisation of around 180
million pounds ($232.92 million) on Thursday and net debt of
just under $2 billion.
“The proposed long term refinancing announced on 20th August
is in the best interests of all of Premier’s stakeholders and
has already received very strong indications of equity support,"
a spokesman for Premier said.
($1 = 0.7728 pounds)
(Reporting by Shadia Nasralla, Clara Denina, Ron Bousso
Editing by David Goodman, Kirsten Donovan)