BP plc (NYSE: BP) is set to raise a few billion dollars in cash after a bond offering has been filed with the SEC this morning via its BP Capital Market plc unit. This is the funding unit of troubled BP, and the notes will be guaranteed by the parent company. BP filed to sell five-year and ten-year bond maturities in a benchmark offering and the bonds should price late today.
Among the huge underwriting group is Morgan Stanley, Barclays Capital, BNP Paribas, Citigroup, Goldman Sachs, and Royal Bank of Scotland. Unless any ratings agency changes come, these are also expected to be rated “A2” at Moody’s and expected to be “A” at Standard & Poor’s.
The net proceeds of the offering will used for general corporate purposes, paying down existing debt, and probably or ultimately working toward offsetting that huge $20 billion commitment for the Gulf of Mexico disaster.
The filing does not disclose terms nor does it divulge the exact size of the offering. The benchmark note size implies that this offering could reach into the billions.
JON C. OGG
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
