HYBRIDS: BP: Refinancing Perps
XS2193661324 BPLN 3.25 NC26 is a €2.5bn Hybrid callable in the 22 March 2026 - 22 June 2026 window.
• In the Q1 earnings call, the company said several times that they were focusing both on Net Debt reduction (to $14-18bn by 2027) and that the S&P 10% per year (25% over 10yrs) rule would be considered.
• With $13.7bn of perps outstanding, the company could issue just €1.3bn when they refinance.
• US05565QDU94 BPLN 4.375 was called 1st Sep 2025.
• Original outstanding was $2.5bn
• $1.3bn was Tendered Feb 2024 leaving $1.2bn.
• BP issued $2.5bn across EUR,GBP and USD on 18/19 Nov 2024.
• The CFO said that maturity window with regard to the hybrid stack doesn't open until June. This may imply that nothing imminent will happen but the company did take the opportunistic approach of refinancing the Sep 25 Perp some 10 Months early. One to watch given current strength.
(BPLN; Sub A3/BBB/A-)
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