Premier Top Creditors Approve Takeover

UK producer Premier moved another step nearer the all-share takeover by Chrysaor February 22 as its major shareholders approved the two debt-restructuring plans at a meeting held that day. Comfortable majorities representing over 95% of the debt approved both motions with most preferring to take shares instead of cash, paving the way for the creation of Harbour Energy next month. 

The restructuring plans remain subject to approval by the Scottish Court of Session with the sanction hearing due to start March 19.

Premier’s senior creditors could opt to receive a partial cash alternative to shares, which was capped at some $175mn. In addition, senior creditors could subscribe in cash at a pre-agreed price for new shares in the new company.

The full number of creditor shares, equal to 18% of the new company, are expected to be issued to senior creditors at completion. The remaining shares are expected to be held at completion in the following proportions: 77% by Harbour North Sea, its concert parties and other Chrysaor shareholders and 5% by Premier shareholders.

The cash received from subscribing creditors under the top-up election is expected to equal the payment required under the cash-out option, and the combined group therefore expects to retain the $175mn of cash earmarked for the cash-out option.