BP launches tender offer for up to $1 billion of 4.375% perpetuals

By Marisa Wong

Los Angeles, Feb. 26 – BP plc announced that wholly owned subsidiary BP Capital Markets plc has begun a cash tender offer to purchase for cash up to an aggregate principal amount of $1 billion of its $2.5 billion outstanding 4.375% perpetual subordinated non-call 5.25-year fixed-rate reset notes (Cusip: 05565QDU9).

The issuer is offering a total consideration of $990 per $1,000 principal amount, according to a Monday press release.

The total consideration includes an early tender payment of $30 per $1,000 of notes tendered by the early tender time and accepted for purchase.

The issuer will also pay accrued interest.

The issuer said it may increase or decrease the offer cap at any time but is not obligated to do so.

Tenders may be subject to proration.

The offer is not conditioned on the tender of any minimum amount of notes.

The early tender time is 5 p.m. ET on March 8, which is also the withdrawal deadline.

The company may choose to settle early tendered notes on an early settlement date, which would occur soon after the early deadline.

The tender offer will expire at 5 p.m. ET on March 25.

The lead dealer managers for the tender offer are MUFG Securities Americas Inc. (212 405-7481 or 877 744-4532; DCM-LiabilityManagement@int.sc.mufg.jp) and TD Securities (USA) LLC (212 827-2842 or 866 584-2096; LM@tdsecurities.com).

The tender and information agent is D.F. King & Co. (877 896-3192 or, for banks and brokers, 212 269-5550; BP@dfking.com).

BP is a multinational oil and gas company based in London.

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