Allen & Overy said today that the complex restructuring of the financial indebtedness of Premier Oil plc., the independent oil and gas exploration and production company, has become effective.
This is the largest and most complex restructuring of a North Sea oil company to date.
 
Beyond the North Sea, Premier Oil has oil and gas interests in South East Asia, Pakistan, the Falkland Islands and Latin America. It is one of several companies in the sector evaluating financing options as they continue to adapt to the impact of the prolonged low oil price environment.
 
The restructuring’s complex nature arose from the significant mix of debt involved, which included listed bonds – both retail and convertible –, Schuldschein loans, a revolving credit facility, term loans, private placement notes and swaps. It involved schemes of arrangement in respect of two companies in the Premier Group and a conversion of the German law Schuldschein loans  into an English facility.
 
The Allen & Overy team advised the co-ordinating committee of banks providing a USD2.5bn  revolving credit facility and combined GBP100 million and USD150 million term loan to Premier Oil.
 
Partner Trevor Borthwick, lead partner and head of Allen & Overy’s Global Corporate Lending Group, commented: “As oil and gas companies adjust to the altered commodities pricing landscape, debt restructuring is likely to be an option many have to consider. Here the mix of debt involved, the complexity of Premier’s business and the intricacies of oilfield regulation – particularly in the North Sea – required us to mobilise a large cross-practice international team.”
 
The wider Allen & Overy team comprised Restructuring partner Katrina Buckley and senior associate Nick Lister, Corporate Lending counsel Diane Richardson and senior associate Angela Lai. Advice on the equity aspects of the transaction was provided by partner Stephen Mathews and senior associate Catherine Jones, tax advice by partner Lydia Challen and capital markets advice by partners Tom Roberts and Jamie Durham, with support from senior associate Cieren Leigh. All are based in London.
 
Further support was provided by Allen & Overy lawyers in offices including Amsterdam, Hanoi, Ho Chi Minh, Jakarta, Frankfurt, New York and Singapore. The Legal Services Centre in Belfast and Project Management Office in London also played key roles.