By Cristal Cody
Tupelo, Miss., Feb. 8 – BP Capital Markets plc priced $2.85 billion of notes (A2/A-/A) in four tranches on Wednesday, adding a floating-rate tranche to an earlier planned three-part deal, according to a market source.
The company sold $500 million of floating-rate notes due Aug. 14, 2018 at Libor plus 35 basis points.
BP Capital Markets priced $500 million in a tap of its 2.315% notes due Feb. 13, 2020 at a spread of 65 bps over Treasuries.
The company originally sold $850 million of the notes on Feb. 10, 2015 at par to yield a spread of 80 bps over Treasuries. The total outstanding is $1.35 billion.
In the third tranche, BP Capital priced $1 billion of 3.224% notes due April 14, 2024 at a spread of Treasuries plus 110 bps.
The final $850 million tranche of 3.588% notes due April 14, 2027 priced at a Treasuries plus 125 bps spread.
The notes due 2018, 2020 and 2024 priced on the tight side of guidance, while the 10-year notes priced in line with talk.
BofA Merrill Lynch, Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and MUFG were the bookrunners.
The notes are guaranteed by parent company BP plc.
BP Capital Markets is a financing arm of the London-based oil and gas company.
| Issuer: | BP Capital Markets plc
|
| Guarantor: | BP plc
|
| Amount: | $2.85 billion
|
| Description: | Notes
|
| Bookrunners: | BofA Merrill Lynch, Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., MUFG
|
| Trade date: | Feb. 8
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A
|
|
|
| 18-month notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 14, 2018
|
| Coupon: | Libor plus 35 bps
|
| Price guidance: | Libor plus 40 bps area, plus or minus 5 bps
|
|
|
| Three-year notes
|
| Amount: | $500 million reopening
|
| Maturity: | Feb. 13, 2020
|
| Coupon: | 2.315%
|
| Spread: | Treasuries plus 65 bps
|
| Price guidance: | Treasuries plus 70 bps area, plus or minus 5 bps
|
| Total outstanding: | $1.35 billion
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 14, 2024
|
| Coupon: | 3.224%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $850 million
|
| Maturity: | April 14, 2027
|
| Coupon: | 3.588%
|
| Spread: | Treasuries plus 125 bps
|
| Price guidance: | Treasuries plus 125 bps area
|
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