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Banking, finance, and taxes

BP Raising Billions (BP)

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By Jon C. Ogg Updated Published
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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

Contact [email protected] for any questions or corrections.

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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