By Lisa Mayntz and Cristal Cody
Chicago, Feb. 4 – BP Capital Markets America Inc. sold $2 billion in a $750 million tap of its June 4, 2051 notes and $1.25 billion of new notes due Feb. 8, 2061, according to a market source and an FWP filed with the Securities and Exchange Commission.
The 2051 add-on will form part of the same series with the $1.5 billion 2.939% guaranteed notes due 2051 issued on Dec. 4, 2020.
Upon completion of the offering, $2.25 billion of the notes will be outstanding.
The notes were priced at 94.788 for a yield of 3.209%, or a spread of Treasuries plus 128 basis points.
Initial price talk had the notes coming in the Treasuries plus 150 bps area.
The notes have a make-whole redemption before Dec. 4, 2050 at Treasuries plus 20 bps, then a par redemption after that date.
BP also sold $1.25 billion of 3.379% fixed-rate guaranteed notes due Feb. 8, 2061 at par to yield 3.379%, or a spread of U.S. Treasuries plus 145 bps.
Initial price talk was in the Treasuries plus 170 bps area.
The notes feature a make-whole call before Aug. 8, 2060 and then can be redeemed at par until maturity.
The notes are guaranteed by BP plc.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and NatWest Markets Securities Inc. were bookrunners for the offering.
BP Capital Markets America is a Chicago-based aviation and marine fuels provider and subsidiary of London-based oil and gas company BP plc.
| Issuer: | BP Capital Markets America Inc.
|
| Guarantor: | BP plc
|
| Amount: | $2 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and NatWest Markets Securities Inc.
|
| Pricing date: | Feb. 3
|
| Settlement date: | Feb. 8
|
| Distribution: | SEC registered
|
|
|
| 2051 add-on
|
| Amount: | $750 million
|
| Maturity: | June 4, 2051
|
| Description: | Guaranteed notes
|
| Coupon: | 2.939%
|
| Price: | 94.788
|
| Yield: | 3.209%
|
| Spread: | Treasuries plus 128 bps
|
| Call features: | Make-whole call before Dec. 4, 2050 at price equal to greater of par and Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 150 bps area
|
| Original issue: | $1.5 billion issued on Dec. 4, 2020
|
|
|
| 2061 notes
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| Amount: | $1.25 billion
|
| Maturity: | Feb. 8, 2061
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| Description: | Guaranteed notes
|
| Coupon: | 3.379%
|
| Price: | Par
|
| Yield: | 3.379%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call before Aug. 8, 2060 at price equal to greater of par and Treasuries plus 25 bps; thereafter at par
|
| Price guidance: | Treasuries plus 170 bps area
|
|
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