By Andrea Heisinger
New York, Oct. 27 - BP Capital Markets plc sold $2 billion of notes (A2/A/) in two parts on Thursday, a source close to the trade said.
The $1 billion of five-year paper was sold at par to yield 2.248%, or Treasuries plus 107 basis points. The notes were sold at the tight end of guidance, which was in the 110 bps area.
A $1 billion tranche of 10-year notes priced at par to yield 3.561% with a spread of 117 bps over Treasuries. The notes priced at the tight end of talk, which was in the 120 bps area.
Bookrunners were Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Mitsubishi UFJ Securities (USA) Inc.
Proceeds will be used for general corporate purposes.
BP Capital Markets last sold debt in a $3.7 billion offering in three parts on March 8, 2011. The 3.2% five-year notes from that sale were priced at a 100 bps spread and a 4.742% 10-year tranche at 120 bps.
The issuing arm of oil company BP plc is based in Middlesex, England.
| Issuer: | BP Capital Markets plc
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mitsubishi UFJ Securities (USA) Inc.
|
| Trade date: | Oct. 27
|
| Settlement date: | Nov. 1
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 1, 2016
|
| Coupon: | 2.248%
|
| Price: | Par
|
| Yield: | 2.248%
|
| Spread: | Treasuries plus 107 bps
|
| Price talk: | 110 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 1, 2021
|
| Coupon: | 3.561%
|
| Price: | Par
|
| Yield: | 3.561%
|
| Spread: | Treasuries plus 117 bps
|
| Price talk: | 120 bps area
|
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