By James McCandless
San Antonio, June 18 – BP Capital Markets plc priced a $2.5 billion offering of $1,000-par perpetual subordinated non-call 5.25-year fixed-rate reset notes with an initial coupon of 4.375%, according to an FWP filing with the Securities and Exchange Commission.
The notes are guaranteed by BP plc.
There is no greenshoe.
BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Lloyds Bank Corporate Markets plc, Mizuho Securities USA LLC, MUFG and Santander Investment Securities Inc. are the bookrunners.
The coupon resets on Sept. 22, 2025 and every five years thereafter at a rate of Treasuries plus 437.5 bps. Beginning on the Sept. 22, 2030 reset date, the coupon increases by an additional 25 bps per annum through June 22, 2045, increasing to 100 bps per annum thereafter.
The notes are redeemable within 60 days of the first reset date or any coupon payment date. Prior to that, the notes are redeemable after a ratings agency event, accounting event or tax deduction event.
BP Capital plans to use the proceeds for general corporate purposes, including working capital for BP or other companies in the BP group and the repayment of existing borrowings of BP and its subsidiaries.
The company plans to list the preferreds on the New York Stock Exchange.
BP Capital is a Sunbury, England-based debt issuer for oil and gas producing parent company BP.
| Issuer: | BP Capital Markets plc
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| Guarantor: | BP plc
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| Description: | Perpetual subordinated non-call 5.25 year fixed-rate reset notes
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| Amount: | $2.5 billion
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| Maturity: | Perpetual
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| Bookrunner: | BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Lloyds Bank Corporate Markets plc, Mizuho Securities USA LLC, MUFG and Santander Investment Securities Inc.
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| Coupon: | 4.375%, then resets on Sept. 22, 2025 and every five years thereafter at a rate of Treasuries plus 437.5 bps. Beginning on the Sept. 22, 2030 reset date, the coupon increases by an additional 25 bps per annum through June 22, 2045, increasing to 100 bps per annum thereafter
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| Price: | Par of $1,000
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| Spread: | 403.6 bps over Treasuries
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| Call: | June 22, 2025
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| Pricing date: | June 17
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| Settlement date: | June 22
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| Distribution: | SEC registered
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