DEAL: Premier Oil’s debt restructuring

Author: Amélie Labbé | Published: 8 Aug 2017

After more than a year of negotiations, Premier Oil’s long-awaited refinancing closed in late June. While an initial agreement on the deal – which has been called the largest refinancing in the North Sea since oil prices crashed – was expected at the end of 2016, all creditors had a holdout provision so securing a deal was a challenge.

According to  Allen & Overy partner Katrina Buckley, because Premier Oil is a public company there were additional complexities due to the fact it had to post regular updates on what it was doing. "There was pressure to meet certain deadlines," she said.

The agreement, which covered debt facilities of $3.9 billion (some of them undrawn) was also complicated by the multiple creditors terms involved, as well as financial covenants which were put in place before shrinking oil prices affected the firm’s bottom line. The UK oil exploration company amended...