By Rebecca Melvin
New York, June 1 – BP Capital Markets plc priced £400 million of seven-year convertible bonds to yield 1% with an initial conversion premium of 20% above the reference price based on the ordinary shares, according to a news release.
The initial conversion price is £4.3325, resulting in an initial conversion ratio of 23,081.3618 shares per bond.
As previously reported when the deal priced May 19, the Regulation S bonds are guaranteed by BP plc. In connection with the offering of bonds, the company entered into call option agreements, or a call spread, to hedge its exposure to the potential exercise of the conversion rights under the bonds.
Proceeds will be for general corporate purposes and for the purchase of the cash-settled call options.
The share reference price based on the daily volume-weighted average price of ordinary shares on the London Stock Exchange over seven trading days beginning May 20 is £3.6104.
Settlement of the bonds is expected to take place May 24.
BP Capital Markets is a unit of oil company BP plc, which is based in London.
| Issuer: | BP Capital Markets plc
|
| Issue: | Convertible bonds
|
| Amount: | £400 million
|
| Maturity: | 2023
|
| Coupon: | 1%
|
| Initial conversion premium: | 20%
|
| Initial conversion price: | £4.3325
|
| Initial conversion ratio: | 23,081.3618 shares per bond
|
| Pricing date: | May 19
|
| Settlement date: | May 24
|
| Share reference price: | £3.6104
|
| Stock symbol: | London: BP
|
| Distribution: | Regulation S
|
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