HG bonds: BP Capital Markets prints $2B of 2032 notes; terms

BP Capital Markets America Inc. today completed a $2 billion offering of par-priced 2.721% 10-year notes due Jan. 12, 2032, at T+95.

The issuer last tapped the market in September 2021, when it placed a $1.5 billion, two-part offering across new 3.001% notes due March 2052 at T+117, and a $250 million tap of its existing 3.379% notes due Feb. 8, 2061, at T+127, or 3.101%. It priced the initial tranche of the 2061 issue in February 2021 as a $1.25 billion offering at T+145.

Also in February 2021, the company placed a $750 million add-on to its 2.939% notes due June 2051 at T+128, or 3.209%. It placed the initial tranche in December 2020 as a $1.5 billion offering at T+125. For reference, the issue changed hands yesterday at a G-spread of 106 basis points, trade data shows.

BP Capital Markets America is the U.S. subsidiary of BP Capital Markets PLC, a finance company, issuing debt securities and commercial paper for parent energy company BP PLC.

The issuer's A–/A2/A credit ratings include stable outlooks all around.

In November 2021, S&P Global Ratings changed the outlook for its A profile to stable, from negative, for BP and its subsidiaries, citing the company's financial policy implementation as a key factor behind the outlook revision. "The stable outlook reflects our view that BP's credit metrics will continue to improve over the coming quarters, with FFO to debt exceeding 30% in 2021, and remaining on a trend toward 40% thereafter," the agency said Nov. 9, 2021.

Terms:

* Article amended at 12:05 p.m. ET on Jan. 21, 2022, to correct issuer's credit ratings.