Tuesday, September 28, 2010

Citigroup (NYSE:C), BNP, Barclays (NYSE:BCS), RBS (NYSE:RBS) Leading BP (NYSE:BP) $3 Billion Bond Issuance

BP Capital Markets PLC, the funding unit of BP Plc (NYSE:BP), is close to issuing about $3 billion in bonds, led by Citigroup (NYSE:C), BNP Paribas, Barclays Capital (NYSE:BCS), Royal Bank of Scotland (NYSE:RBS) and Mizuho Securities USA Inc.

The bonds will be 5- and 10-year bonds sold in U.S. dollars.

Pricing of the bonds will be somewhere in the low to mid 200 basis points range over Treasuries, with tranches split close to equal.

BP PLC, the parent company, will be guaranteeing the bonds, which are projected to be rated A2 by Moody's Investors Service (NYSE:MC) and A by Standard & Poor's.

In a filing with the Securities and Exchange Commission BP said they will use the capital to pay for existing debt and other general corporate purposes.

A spokesman for BP said the bond issuance isn't specifically related to the BP oil spill and is part of normal financial management of the company.

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