By Cristal Cody
Tupelo, Miss., Feb. 7 – BP Capital Markets America Inc. (A1/A-) priced $2 billion of guaranteed senior notes on Wednesday in two tranches, according to additional details of the offering in an FWP filing with the Securities and Exchange Commission.
The company sold $1 billion of 3.41% notes due Feb. 11, 2026 at par to yield a spread of Treasuries plus 82 basis points. Price guidance was in the Treasuries plus 85 bps area.
BP placed a $1 billion add-on to its 4.234% notes due Nov. 6, 2028 at 104.965 to yield 3.611%. The notes priced with a Treasuries plus 92 bps spread, compared to guidance in the Treasuries plus 95 bps area, plus or minus 3 bps.
BP Capital originally sold $1 billion of the 10-year notes on Nov. 1 at par to yield Treasuries plus 110 bps. The total outstanding is now $2 billion.
BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Lloyds Securities Inc., BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.
The notes are guaranteed by BP plc.
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
|
| Description: | Senior notes
|
| Bookrunners: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Lloyds Securities Inc., BofA Merrill Lynch and Morgan Stanley & Co. LLC
|
| Trade date: | Feb. 6
|
| Settlement date: | Feb. 11
|
| Ratings: | Moody’s: A1
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 11, 2026
|
| Coupon: | 3.41%
|
| Price: | Par
|
| Yield: | 3.41%
|
| Spread: | Treasuries plus 82 bps
|
| Call features: | Make-whole call before Dec. 11, 2025 at price equal to greater of par and Treasuries plus 15 bps; thereafter at par
|
| Price talk: | Treasuries plus 85 bps, plus or minus 3 bps; initial talk at Treasuries plus 95 bps to 100 bps area
|
|
|
| Reopened notes 2028
|
| Amount: | $1 billion reopening
|
| Maturity: | Nov. 6, 2028
|
| Coupon: | 4.234%
|
| Price: | 104.965
|
| Yield: | 3.611%
|
| Spread: | Treasuries plus 92 bps
|
| Call features: | Make-whole call before Aug. 6, 2028 at price equal to greater of par and Treasuries plus 20 bps; thereafter at par
|
| Price talk: | Treasuries 95 bps, plus or minus 3 bps; initial talk at Treasuries plus 105 bps to 110 bps area
|
| Total outstanding: | $2 billion, including $1 billion of notes priced Nov. 1 at par to yield Treasuries plus 110 bps
|
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