LONDON (SHARECAST) - Energy firm Premier Oil's trade-in offer for its convertible bonds due 2014 has met with a very strong response.
Holders representing 98.13% of the $250m of guaranteed convertible bonds due 2014 have elected to exchange their existing bonds for guaranteed convertible bonds due 2018.
The new bonds will have a conversion price of $7.00 and a coupon (interest rate) of 2.5%. This compares with the existing convertible bonds, which have a conversion price of $6.69 and a coupon of 2.875%.
Following completion of the exchange offer, Premier is intending to exercise its right under the terms and conditions of the existing bonds to redeem the remaining $4.7m of bonds at par (redemption price) plus accrued interest.