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UPDATE 2-Premier Oil to be renamed Harbour Energy after Chrysaor merger

Wed, 16th Dec 2020 15:43

* Chrysaor shareholders to own 77% of new entity

* Premier creditors to be paid $1.23 bln cash out of $1.9
bln owed

* Have option to take new shares up to 18% of new entity

* Premier shareholders to hold 5.5% of new entity
(Adds details from prospectus)

By Julia Payne and Shadia Nasralla

LONDON, Dec 16 (Reuters) - Premier Oil will be
renamed Harbour Energy Plc after a reverse takeover by private
equity-backed Chrysaor due to complete in the first quarter of
2021, Premier said on Wednesday.

Struggling to deal with heavy debt after its profits were
slashed by a drop in oil prices during COVID-19 lockdowns,
Premier struck a deal with Chrysaor in October to create the
British North Sea's largest oil and gas producer.

Premier's shareholders will vote on the transaction on Jan.
12. Chrysaor shareholders, primarily private equity firm Harbour
and Singapore's GIC, will own up to 77% of the new firm.

Creditors of Premier, which has net debt of $1.9 billion and
a market capitalisation of $284 million, will receive $1.2
billion in cash under the merger and debt restructuring plan
from a new debt facility and existing cash from both groups.

This on average represents a payout of around 61 cents for
each dollar owed, the prospectus said. They can also elect to
receive further shares representing up to 18% of the new group,
or a cash alternative bringing the payout to around 75 cents.

Existing Premier shareholders will hold around 5.5% of the
new company.

Premier chief executive Tony Durrant has stepped down from
the board as part of the merger transition, with finance
director Richard Rose taking over as interim CEO on Jan. 1.

Once the merger is complete, Linda Cook will become Harbour
Energy CEO and Blair Thomas chairman of the group, which is
expected to produce 200,000-220,000 barrels of oil equivalent
per day next year.

The prospectus said the combined group is seen generating
enough free cash flow to support shareholder returns, and a
sustainable dividend is expected to be introduced with respect
to the financial year to Dec. 2021.

Chrysaor has hedged about 67% of its first-half 2021 oil
output at an average $60 a barrel, and over 70% of its gas
volumes.

Premier's takeover could herald wider consolidation but the
pool of buyers is small in a sector with an uncertain outlook,
with many leading energy companies looking to sell large parts
of their portfolios as they shift towards renewable energy.
(Reporting by Julia Payne, additional reporting by Shadia
Nasralla; Editing by Elaine Hardcastle and Jan Harvey)

More News
6 Oct 2020 08:02

UPDATE 5-Chrysaor to take over Premier Oil, creating UK North Sea's biggest producer

* Merger will create biggest UK N. Sea oil, gas producer* Premier had $1.9 bln in net debt* Reverse takeover would retain Premier's London listing* Premier shareholders expected to own under 6% of new group* FACTBOX on North Sea oil's changing owners...

Read more
6 Oct 2020 08:02

UPDATE 4-Chrysaor to take over Premier Oil, creating UK North Sea's biggest producer

* Merger will create biggest UK N. Sea oil, gas producer* Premier had $1.9 bln in net debt* Reverse takeover would retain Premier's London listing* Premier shareholders expected to own under 6% of new group* FACTBOX on North Sea oil's changing owners...

Read more
6 Oct 2020 08:02

UPDATE 3-Chrysaor to take over Premier Oil, paying off Premier creditors

* Merger will create biggest UK N. Sea oil, gas producer* Premier had $1.9 bln in net debt* Reverse takeover would retain Premier's London listing* Premier shareholders expected to own under 6% of new group (Adds details on payment for creditors)By ...

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6 Oct 2020 08:02

UPDATE 2-Chrysaor to take over Premier Oil, paying off Premier creditors

* Merger will create biggest UK N. Sea oil, gas producer* Premier had $1.9 bln in net debt* Reverse takeover would retain Premier's London listing* Premier shareholders expected to own under 6% of new group (Adds graphics, comment, detail)By Shadia ...

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6 Oct 2020 08:02

UPDATE 1-Premier Oil agrees to merge with Chrysaor, pay off creditors

* Merger will create biggest UK N. Sea oil, gas producer* Premier had $1.9 bln in net debt* Reverse takeover would retain Premier's London listing* Premier shareholders expected to own under 6% of new group (Adds detail, background)Oct 6 (Reuters) -...

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1 Oct 2020 10:27

Premier Oil Creditors Agree To Waive Covenants Until Early November

Premier Oil Creditors Agree To Waive Covenants Until Early November

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1 Oct 2020 10:26

UPDATE 1-Premier Oil creditors extend debt test waiver to Nov. 5

* Creditors poised to choose future path for Premier* Potential Chrysaor deal still on table* Little interest in debt auction at 72 cents/dollar -source (Adds detail on ARCM debt auction, alternative deal)By Shadia Nasralla and Clara DeninaLONDON, O...

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1 Oct 2020 07:24

Premier Oil creditors extend debt test waiver to Nov. 5

LONDON, Oct 1 (Reuters) - Creditors of North Sea-focused Premier Oil have extended a waiver for the group's debt covenant test until Nov. 5, giving it breathing space to avoid a debt crunch, the company said on Thursday.Premier needs to convince a...

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25 Sep 2020 18:48

Premier Oil seeks new covenant waiver extension - source

LONDON, Sept 25 (Reuters) - Premier Oil is asking debt holders to extend a waiver on its borrowing terms beyond Sept. 30 while it tries to convince at least 75% of its creditors to back a plan to raise fresh equity, a source with knowledge of the...

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23 Sep 2020 16:35

Premier Oil seeks another price cut for BP North Sea deal -sources

* Premier wants to lower deal price by $70-$80 mln -sources* BP agreed in June to sweeten terms of dealBy Clara Denina and Ron BoussoLONDON, Sept 23 (Reuters) - Struggling oil and gas producer Premier Oil has begun talks with BP to lower for the s...

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21 Sep 2020 13:04

Hedge fund ARCM to sell $200 mln of Premier Oil debt -sources

By Clara DeninaLONDON, Sept 21 (Reuters) - Premier Oil's biggest lender, hedge fund Asia Research and Capital Management (ARCM), plans to auction $200 million of the energy producer's debt ahead of a $530 million equity raise by the company, three...

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17 Sep 2020 18:22

UPDATE 1-Premier Oil receives indicative support of $325 mln for capital increase -source

(Adds details)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 n...

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