Premier Oil synthetic warrants

Has anyone who holds these done anything with them, or know what to do? If so, in layman's terms, what does someone need to do if they want to exercise them?

Comments

  • shotgun, my warrants are currently held hostage in a SIPP by Barclays smartinvestor. Barclays say their platform doesn't support this asset class and they are working on it. They have been saying this since I first asked in October last year. If you do nothing or in the case of Barclays customers are forced to do nothing, the warrants will expire in July 2018 and be worthless.

    You can sell the warrants through your broker or you can excercise them (i dont remember the strike price but am pretty sure that they are now in the money).

    Back to Barclays, my suspicion is that they have no intention of supporting these warrants and that they will do nothing and just wait until July.

    ps: like thousands of others I am in the process of moving from Barclays, but the rush to the doors since the transfer from Stockbrokers is such that the current transfer time is over 3 months, so too late for the premier oil warrant holders if you start now.
  • John, you state 'the warrants will expire in July 2018 and be worthless.'. May I ask where you got this date from ?

    From my copy of the prospectus :

    2. Synthetic Equity Growth Fee
    The Synthetic Warrants will confer on each Synthetic Warrant Holder the right to receive a payment in cash from or on behalf of the Issuer of a Proportionate Share of a fee which in aggregate is equal to the Synthetic Warrant Percentage of:

    (a) the Market Capitalisation, on the earliest of:
    i. the calendar quarter-end date on which the Gross Leverage Ratio of the Group falls below 3:1;
    ii. the calendar quarter-end date on which the New Net Leverage Ratio of the Group falls below 2.5:1;
    iii. the maturity date of the Senior Secured Debt Facilities; and
    iv. the date on which the Senior Secured Debt Facilities are repaid or prepaid and cancelled in full, (the “Calculation Date”)
    (b) minus the Total Base Value, (such aggregate amount being the “Synthetic Equity Growth Fee”).

    12. Expiry
    The Synthetic Warrants will not expire until the Synthetic Equity Growth Fee is paid on the terms of the Synthetic Warrant Deed Polls following the Calculation Date.

    So, I do not expect my Synthetic Warrents to expire until they pay me some money ! Or have I totally missed the point ?


  • edited May 2018
    Hi Euro17,

    I must apologise, I was wrong. The issue is not exactly that the warrants become worthless. However if nothing is done to elect to receive them by 28/7/18 the impact is the same.

    In the case of Barclays customers for example...Because Barclays Smartinvestor refuses to support the warrants, Barclays customers cannot make the election to take the warrants. If an election was not made by 22/6/17 the right to Equity warrants was lost but the right to synthetic warrants remains open provided a claim is made by 28/7/18, after which the right to both are lost.

    I have cut and pasted the following from Premier Oil's website....


    ...What rights do Retail Bondholders have to receive Equity Warrants and/or Synthetic Warrants?



    Retail Bondholders who submitted their Election Forms issued in connection with Premier’s scheme of arrangement before the deadline of 5pm on 22 June 2017 were given the opportunity to elect to receive either Equity Warrants, Synthetic Warrants or a combination of the two.



    Retail Bondholders who did not submit an Election Form before the deadline of 5pm on 22 June 2017 are not entitled to receive Equity Warrants. Instead, Retail Bondholders who can prove that they were Retail Bondholders as at 5pm on 22 June 2017 have until 28 July 2018 to submit an Election Form, along with evidence showing that they were Retail Bondholders as at 5pm on 22 June 2017, by email to [email protected] to request to receive Synthetic Warrants only. If an Election form is not completed and submitted by or on behalf of a Retail Bondholder before 28 July 2018, the Retail Bondholder will not be entitled to receive Synthetic Warrants....


  • Can you not elect to get warrants or synthetics outside of your current platform, paper form or something?
  • An update on this from my experience - I hold PMO1 with Barclays Smartinvestor, who still cannot decide if they can hold the warrants or not (synthetic are the only remaining option).

    It seems you can elect to get the synthetic warrants delivered to another broker. But who?
    I have a HL account and they say they hold the warrants for existing clients but will not allow transfers in of the warrant.

    Anyone in a similar situation or know of brokers who can handle it? (HL also said it is not possible to exercise it, but holding to expiry is better than not having at all!).
  • I hold Premier Oil Synthetic Warrents in my Selftrade Dealing Account, because they were unable to be held in my Selftrade ISA, where my Premier Oil Bonds are.
  • edited June 2018
    Thanks everyone for your replies.
    I have them in my SDA as well Euro17. Presumably we don't need to elect to receive them as we already have them.
    The equity warrants have an exercise price of 42.75 pence and are exercisable from their issuance until 31 May 2022.
    http://www.premier-oil.com/premieroil/media/press/completion-of-the-refinancing

    I have a whopping 403 of them, so I don't think I'll be ordering that new car just yet. That comes to £172.28 to exercise them. 403 * £1.09 = £439.27 and a profit of 439.27- 172.28 = £266.99. (Better than a poke in the eye with a sharp stick)
  • Great news shotgun - you're even richer than you think! The exercise price was reduced to 41.8p so your have another £3.22, happy days.
  • update from Barclays...they told me today if they dont sort out the problem with the warrants by the drop-dead date then they will give me the cash value in lieu.
  • John, excellent news, surely they must apply this to all clients. How did you hear from them, a letter?
    I have been asking for ages, must have wasted some 30 hours with letters, calls etc but have heard nothing back from them.
  • Hi pdepp, only verbal I'm afraid, but I have no reason to disbelieve them as the calls are recorded. I've raised numerous (10+) complaints (all upheld) with them since August and I think they've just got sick of me. You might try emailing [email protected], I'd be amazed if he actually reads any of them but I do know the address is monitored.
  • John, thanks for the reply, I have also been calling, writing etc since last Autumn and threatened financial ombudsman. My issue has not been 'upheld' as they just say that they cannot currently hold them on the platform. Letters take about a month for a reply from them and even then are largely formulaic and ignore my points.

    Thanks for the email address and yes I will give that a go as well.

    Can I ask you who at Barclays said the cash equivalent would be paid?, was it the person you are addressing your questions to or just one of the corp action team...if the latter then I would not be so happy as they regularly have given out wrong information!

    Lucid, who handle all bondholders on behalf of PMO say that you can get the synthetics delivered elsewhere if you have a letter stating that you held PMO1 on 22 June 17. However, I am yet to find a broker willing to accept a transfer in of the synthetic and the cut off date for applying is 28 July if I am correct and SmartInvestor continue to provide no answers.
  • ok finally an update for anyone who holds Premier Oil retail bond (PMO1) with Barclays Smartinvestor.
    They can offer the synthetic warrant on their platform and you have to reply to the corporate action by 23 July. Amazingly the default option is DO NOTHING, ie do not subscribe to something which has a value.
    It can be done online. There must be a few thousand investors who have the right to this given Barclays offered the retail bond at issue. I would not have spotted it had I not been informed by Lucid, who have been very helpful, as opposed to Barclays who have been very unhelpful.
  • Barclays phoned me this morning as per pdepp's comment above. However the page they have supplied to accept the synthetic warrants didn't work (at least it didn't for me). pdepp it was the specialist complaints team who told me about the cash equivalent, however this may be unnecessary if they get the page working.

    Finally it beggars belief that the default option provided by Barclays is in effect throw money into the waste paper basket. There are surely hundreds if not thousands of holders who will do nothing and as a result of Barclays incompetence lose money.

    I'm not a lawyer, but I believe our holdings are not actually in our name on the share/bond holder register, but in fact held in the name of AJ Bell. It is therefore quite possible for AJ Bell to accept the synthetic warrants and thereby their value, whilst at the same time accept their customers default option of not accepting the warrants. The effect would be for AJBell to keep the gain.
  • For any interested parties, I have just received this notification from Selftrade : 'Premier Oil Plc Synthetic Warrant Senior Creditors' - Further to the Final Redemption becoming effective, we will be crediting your cash account with GBP0.49232061327 per Share today.
  • Hi Euro17, I reread your post from May 18 as above - so I guess the exercise was automatically triggered by one of the conditions? Or did you exercise, which I don't think you can! Im trying to figure out of other brokers will have received payment as of course Barclays remain unaware of anything. Thanks
  • Hi PDepp, there was no action from me and no explanation in the notification. That one sentence was the entire text of the communication !
  • I have a Selftrade account, didn't do anything & was credited with cash.
  • Shotgun, did you have the synthetic warrants or the equity warrants - sorry to ask, but in June 18 post you said equity warrants? whereas euro17, and thanks also for the answer, said he had synthetic warrants.
    Anyone else with any other brokers heard anything? Barclays remain completely unaware of all. I have tried contacting Premier Oil investor relations but they dont reply either.
  • I had the synthetic warrants, as indicated in the thread title. The equity warrants was a copy & paste of info about them. I have an ISA account with Selftrade. They also gave me a dealing account alongside it, which I hadn't used. The Synthetic warrants appeared in the dealing account last year. Other than contacting Selftrade about them, I was not able to do anything productive with them, then last week, the Synthetic warrants disappeared & the cash was paid in. I think I received marginally less than the calculations above suggested at that time.
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