Friday, September 24, 2010

BP (NYSE:BP) Loan Could be Boosted to $2.25 Billion

A $2 billion loan sought by BP (NYSE:BP) could be increased to $2.25 billion, as the deal, back by Azerbaijan oil sales, drew more demand than expected.

The 15-plus banks part of the deal offered to lend more than the amount sought by BP.

Revenue from the Azeri-Chirag- Deepwater Gunashli field in the waters of Azerbaijan is the collateral for the loan.

BP is borrowing another $3 billion using collateral from their operations in Angola. That deal will remain as it is, and won't be bumped up.

The loans are for five years, and BP will pay 250 basis points over the London interbank offered rate in the first year, 300 after the second year, and 325 after three years.

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