HG bonds: BP Capital adds to 2051 notes, prints new 2061 issue; terms

BP Capital Markets America Inc. today completed a $2 billion, two-part offering across a $750 million tap of the existing 2.939% notes due June 4, 2051, at T+128, or 3.209%, and $1.25 billion of new, par-priced 3.379% 40-year notes due Feb. 8, 2061, at T+145.

The 2051 issue was originally placed Dec. 1, 2020, as a $1.5 billion offering at T+125. For reference, the 2051 bonds traded actively today at a weighted average of T+126, according to MarketAxess.

BP Capital Markets America, the U.S.-based subsidiary of U.K.-based energy company BP PLC, last August completed a $2.5 billion offering in two parts, at par pricing, across 1.749% 10-year notes due August 2030 at T+120 and 2.772% 30-year notes due November 2050 at T+155.

Parent BP PLC's A-/A1/A ratings profile includes stable outlooks from S&P Global Ratings and Fitch. A negative outlook from Moody’s, dating to April 2020, reflects the "severe decline of oil prices and the already weak gas prices" prior to the start of the COVID-19 pandemic.

In a ratings rationale published in June, S&P Global Ratings said the stable outlook "reflects our view that BP will dip below the 30% FFO-to-debt rating threshold in 2020, but recover meaningfully in 2021 under our price assumptions, assisted by announced disposal proceeds." Terms: