By Cristal Cody
Tupelo, Miss., Jan. 8 – Aker BP ASA priced a $1.5 billion Rule 144A and Regulation S split-rated offering of senior notes (Ba1/BBB-/BBB-) in two tranches on Wednesday, according to a market source.
The company sold $500 million of 3% five-year notes at a spread of Treasuries plus 140 basis points, versus initial talk in the 170 bps spread area.
A $1 billion tranche of 3.75% 10-year notes priced with a Treasuries plus 190 bps spread. Initial price talk was in the Treasuries plus 220 bps area.
Citigroup Global Markets Inc., DNB Markets, Inc., ING Financial Markets LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to partially repay the company’s revolving credit facility and for general corporate purposes.
Aker BP is an oil exploration and development company based in Trondheim, Norway.
| Issuer: | Aker BP ASA
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., DNB Markets, Inc., ING Financial Markets LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Trade date: | Jan. 8
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 25, 2025
|
| Coupon: | 3%
|
| Spread: | Treasuries plus 140 bps
|
| Price guidance: | Treasuries plus 145 bps area, plus or minus 5 bps; initial talk at Treasuries plus 170 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Jan. 15, 2030
|
| Coupon: | 3.75%
|
| Spread: | Treasuries plus 190 bps
|
| Price guidance: | Treasuries plus 195 bps area, plus or minus 5 bps; initial talk at Treasuries plus 220 bps area
|
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