Member Info for devonplay

Your basicaly buying the future cash flow, the coupon, and the market difference between the price and the future redemption price (par).

https://www.investopedia.com/terms/y/yieldtomaturity.asp

"I'm not splitting hairs only questioning how you could invest today and earn 68% (or even 65.672%). "
Because it's junk debt and there's a high possibility of it defaulting...

So why don't you explain it Romaron. What the redemption yield is based on the coupon, yield and maturity of May 21st?

"they won't be redeemed on May 21 as pmo doesn't have the money."
Yes, you are right, they've already had one in increase in the coupon, I can't remember the actual data, since the issue.
You are also correct, they rank pari passu with the 500,000,000 Euro issue, in fact they share the same base prospectus.
They've pretty much said that in a previous previous RSN. It's an attractive element of the ORB issue, it's seniority.
I expect they've will need to increase the coupon again and the maturity date and most people are holding out for that. I decided to book my profit and push it towards another retail issue with less moving parts, but I may join the party again in the next few days. Once we know what's going on.I haven't got it to hand, but I think revised YTM on what we know now should be c14% plus any change of terms payments. If you run the basic calc based on existing coupon and May 21 (as if that's going to happen) I came up with a YTM of 55% clean. Not sure how the LSE calculate that price, you'd expect it to be clean. I think there's some discussion about the terms, as if I'm correct, 14% YTM would still not be enough for me...

You do if you hold the May 21 issue, the combination of coupon and redemption yield. If you don't believe me use the LSE's data..I'm presuming they haven't made any adjustments for the possible change in coupon and extension date as this point for the obvious reasons.
https://www.londonstockexchange.com/stock/PMO1/premier-oil-plc/company-page
Coupon frequency 6 months
Coupon rate 5%
YTM 65.672% - is what they've got on this exact moment!
At this point, I don't see any arguement over splitting hairs LOL It's a tad higher than investment grade which ever way you look at it.

"Trying your hardest to scare people into selling"
Yeah, you have to watch out for ACTUAL figures LOL It never works out best in the long term if you use ACTUAL data.

"How could they possible be 690K?"
Because, thats what this site is reporting, did you see the YTM, the market prices this with a return of YTM 68.611% - just let that sink in LOL
And you still don't think this debt isn't distressed? "Hardly indicative of a imminent credit event." Hold them to May 21 and you get a return of 68% on redemption. Honestly.
68%!

KenniGT; my faith in you lost. Go away, please.
:)

YTM 68.611% - just let that sink in LOL

"waiver/extension."
But on what terms and what is going to happen about the deal, that's what we are all waiting to hear about.
"It's in everyone's interest?"
Extension maybe, the deal is less certain if you ask me. Otherwise they wouldn't, on the face it, still be trying to get the 75% level of creditors on board at this late stage.
We should know very soon though.

"Devon; my faith in you lost. Go away, please."
LOL, keep stuffing the cash in.

I tell you what is interesting off the LSE site, their calcualtion on the YTM (using the exiting maturity date I preseume) YTM 68.611%
This close to maturity, if there wasn't a chance of default, those would be trading around par.
But, of course the company has given an indication of what happens if they can't kick the can down the road again, haven't they...a credit event.

I tell you what is interesting off the LSE site, their calcualtion on the YTM (using the exiting maturity date I preseume) YTM 68.611%
This close to maturity, if there wasn't a chance of default, those would be trading around par.
But, of course the company has given an indication of what happens if they can't kick the can down the road again, haven't they...a credit event.

I haven't placde the dot wrong anywhere, I've just copied them off this site. If they are wrong it's because this site is listing them wrong.

29-Sep-20 13:58:51 69.05 10,000 Sell* 69.05 71.00 690.50k
29-Sep-20 13:55:13 69.15 10,000 Sell* 68.85 71.00 691.50k
29-Sep-20 13:49:35 69.35 10,000 Sell* 69.35 71.00 693.50k
Given you think these are mom and pop only instruments. ....As I've also, you can get a trailing effect with bonds.
But, there is an immiment credit event isn't there! Honestly. Why do you think the company draws attention to these things in it's RNS's - if it's not important.

Big sales of PMO1 going through today, I'm going to see if there's been a press release over last Fridays auction, see if they got it away and at what price.

Listed companies have a responsibility to provide timely information, and to avoid an irregular market in their shares, you'd think the position as stated would mean they'd have to inform the market/shareholders if they are facing an immiment credit issue. Even if it's still under negotiation, they've drawn attention to the potential issue if there's failure to reach agreement over testing the covenants on the 30th. You might also hope for an update on how their broader trading position looks. Not just creditor/deal discussions.

"Premier may fall to a merger,takeover or reverse take over but it certainly won't fall into administration"
That all very much depends on how willing the buyers are to pay up for the debt doesn't it?
At least one has said they wouldn't buy it with the deb structures as it is exist today! Honestly.

They may yet again kick the covenant test date down the road, but then again they might also find the "grow the company" bit kicked off the pitch for them. I think your are right to be concerned Jennifer. There's too many "Whatever(s)" still floating around. It's not difficult to imagine the outcome being one where the business is configured to service it's debt pile in a way it's creditors approve of. If that's the case, I might join the party again knowlng the company will be geared towards my interests and whatever equity capital is left will be the first loss risk buffer. We should have a better idea in a few days.