By Cristal Cody
Tupelo, Miss., Sept. 23 – Aker BP ASA priced a $1.25 billion two-part offering of split-rated senior notes (Ba1/BBB-/BBB-) on Wednesday, according to a market source and a news release.
A $500 million tranche of 2.875% notes due Jan. 15, 2026 priced at 99.778 and a spread of Treasuries plus 265 basis points.
The notes were talked to price in the Treasuries plus 300 bps area.
Aker sold $750 million of 4% notes due Jan. 15, 2031 at 99.371 and with a 340 bps over Treasuries spread.
Price talk was at the 375 bps over Treasures area.
Barclays, BMO Capital Markets Corp., J.P. Morgan Securities LLC, SEB Securities, Inc. and Wells Fargo Securities LLC were the joint global coordinators of the Rule 144A and Regulation S offering.
Proceeds will be used to redeem all of the company’s $400 million of outstanding 6% senior notes due 2022, to repay outstanding debt under its revolving credit facility and for general corporate purposes.
Aker BP is an oil exploration and development company based in Trondheim, Norway.
| Issuer: | Aker BP ASA
|
| Amount: | $1.25 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, BMO Capital Markets Corp., J.P. Morgan Securities LLC, SEB Securities, Inc. and Wells Fargo Securities LLC
|
| Trade date: | Sept. 23
|
| Settlement date: | Sept. 30
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Long five-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2026
|
| Coupon: | 2.875%
|
| Price: | 99.778
|
| Spread: | Treasuries plus 265 bps
|
| Price guidance: | Treasuries plus 300 bps area
|
|
|
| Long 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Jan. 15, 2031
|
| Coupon: | 4%
|
| Price: | 99.371
|
| Spread: | Treasuries plus 340 bps
|
| Price guidance: | Treasuries plus 375 bps area
|
|
|
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