Premier Oil plc joins the Order Book for Retail Bonds

Premier Oil plc joins the Order Book for Retail Bonds

Friday 13th December 2013

London Stock Exchange welcomes Premier Oil plc (Premier), the FTSE250 international oil and gas exploration and production company, to its Order Book for Retail Bonds. Premier has raised £150 million in its debut bond, which closed early due to strong demand.

Founded in 1934 and listed since 1936, Premier is a well-established international operator with a growing and diversified production base from over 20 producing fields and significant assets in the North Sea, both UK and Norway, Indonesia, Vietnam, Pakistan and the Falkland Islands.

The Bonds pay a fixed rate of interest of 5% per annum, payable twice yearly on 11 June and 11 December of each year with the first coupon payment being made on 11 June 2014 and the Bonds maturing on 11 December 2020. The Bonds are guaranteed by certain operating subsidiaries of Premier.  At any time during the life of the Bond, investors are permitted to sell the Bonds (within market hours and in normal market conditions) on the open market through their stockbroker.

Gillian Walmsley, Head of Fixed Income at London Stock Exchange Group, said:

“We’re delighted to welcome Premier Oil to London Stock Exchange’s Order book for Retail Bonds this morning. The early closure of this successful fundraising shows that appetite amongst private investors for listed and transparent retail bonds remains strong. Premier Oil’s retail bond marks another important step for ORB, as this is the 40th ORB dedicated issue since the launch of the market in 2010, with total money raised now exceeding £3.8 billion.”

Simon Lockett, Chief Executive, Premier Oil, commented:

"We are very pleased with the success of our debut retail bond, one of the largest issues to date. This bond enables us to diversify our sources of finance while at the same time providing both wholesale and retail investors with an opportunity to invest in an underweight sector."

Barclays, Canaccord Genuity and Lloyds Bank acted as Joint Lead Managers on the issue.

Toby Croasdell, Director, Syndicate, Barclays said:

“Premier Oil’s retail bond has been a great success and shows the depth of demand from retail investors for strong corporate credits. We hope to see more issuers take advantage of the opportunities in retail bonds, and expect to see the ORB continue to grow.”

Adrian Bell, Head of UK Debt Markets, Canaccord Genuity said:

“We were delighted to be involved in this issue. It benefited from exceptionally broad demand from retail investors and has served to establish Premier as a strong borrower in the Sterling Market.”

Marcus Coverdale, Director, Retail Bonds at Lloyds Bank said:

“The success of Premier Oil’s inaugural retail bond demonstrates the increasing sophistication and flexibility of the retail bond market.  The ability to access significant term funding makes the ORB a key funding tool for unrated corporates.”