BP Capital starts capped tender offers for 10 euro, sterling notes

Chicago, Sept. 16 – BP Capital Markets plc started separate tender offers for 10 series of its euro- and sterling-denominated notes on Thursday, according to a press release.

The company is offering to pay a total amount of up to the dollar equivalent of $1.5 billion for the notes.

The company has separated the notes into two priority levels.

At the first priority level, BP Capital is offering to buy from the:

• £204,825,000 outstanding 1.177% notes due August 2023 (ISIN: XS1475051162) with a first optional call date of May 12, 2023 and pricing based on the 0.75% U.K. Treasury Gilt due July 2023 plus 10 basis points;

• €379,744,000 outstanding 1.117% notes due January 2024 (ISIN: XS1527126772) with a first optional call date of Oct. 25, 2023 and pricing based on the January 2024 notes interpolated mid-swap rate minus 5 bps;

• €369,621,000 outstanding 0.9% notes due July 2024 (ISIN: XS1851277969) with pricing based on the July 24 notes interpolated mid-swap rate plus 5 bps;

• £450 million outstanding 2.274% notes due 2026 (ISIN: XS1851278421) with pricing based on the 1.5% U.K. Treasury Gilt due July 2026 plus 50 bps; and

• €1.1 billion 0.831% notes due 2027 (ISIN: XS1992931508) with pricing based on the 2027 notes interpolated mid-swap rate plus 25 bps.

At the second priority level, BP Capital is offering to purchase the:

• €671,029,000 outstanding 1.109% notes due February 2023 (ISIN: XS1190973559) with a negative 0.55% purchase yield;

• €1 billion outstanding 1.876% notes due April 2024 (ISIN: XS2135797202) with a purchase price based on the April 2024 notes interpolated mid-swap rate plus 10 bps;

• €470,921,000 outstanding 0.83% notes due September 2024 (ISIN: XS1492671158) with a first optional call date on June 19, 2024 with a purchase price based on the September 2024 notes interpolated mid-swap rate plus 5 bps;

• €750 million outstanding 1.953% notes due March 2025 (ISIN: XS1375957294) with a purchase price based on the March 2025 notes interpolated mid-swap rate plus 20 bps; and

• €495,294,000 outstanding 1.077% notes due June 2025 (ISIN: XS1637863629) with a first optional call date starting March 26, 2025 and pricing based on the June 2025 notes interpolated mid-swap rate plus 10 bps.

The sterling notes pricing time will be at 4 a.m. ET on Sept. 23. The euro notes pricing time will be at 6 a.m. ET on Sept. 23.

Where applicable, the first call date will be used in pricing the notes.

Accrued interest will also be paid.

No notes in the priority two group will be accepted unless all of the tendered notes in the first priority level group have been accepted.

There are currently about $3.1 billion of the priority level 1 notes outstanding and $4 billion of the priority level 2 notes outstanding.

The offers are subject to proration.

Tender instructions are due by 11 a.m. ET on Sept. 22.

Results will be announced on Sept. 23.

Settlement is planned for all of the offers on Sept. 24.

BP Capital also launched on Thursday a proposed issue of new euro-denominated fixed-rate notes to be guaranteed by BP plc.

The dealer managers for the tender offer are Lloyds Bank Corporate Markets plc (+44 20 7158 1719/1726, liability.management@lloydsbanking.com) and SMBC Nikko Capital Markets Ltd. (+44 20 3527 7545, LM.EMEA@smbcnikko-cm.com).

The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, bp@lucid-is.com).

BP is a multinational oil and gas company with headquarters in London.

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