TNK-BP Issues US$1.5bn of Eurobonds due 2011 and 2016 20 Jul 2006
TNK-BP today announced that on 13 July, it had successfully placed 5 and 10-year Reg S/144A Eurobonds totalling US$1.5bn.
These Eurobonds constitute the first drawdown under TNK-BP’s $5bn Guaranteed Debt Issuance Program established in September 2005.
The 5-year US$500mn issue priced with a coupon of 6.875% at a spread of +190bps over US Treasuries. The 10-year US$1bn issue priced with a coupon of 7.500% at a spread of +245bps over US Treasuries.
The new issues have become in aggregate one of the largest private corporate debt transactions in the CIS region, and also the first 2-tranche offering.
The new issues achieved broad global distribution.
BNP Paribas, Citigroup Global Markets, Credit Suisse and UBS Investment Bank acted as joint lead managers for the deal. Citigroup Global Markets and Credit Suisse acted as joint book-runners on the transaction.
The proceeds of the issues will be used for general corporate purposes.
TNK-BP Chief Financial Officer, Jim Owen commented: “We are delighted with the high level of market interest shown in these bonds. This confirms the confidence of the international lending community in the financial strength of our company. The bonds will enhance our Balance Sheet, providing us with a better quality debt portfolio with greater financial resources and flexibility to manage our future growth opportunities”.
Prior to launch of the transaction TNK-BP’s credit ratings were upgraded by Moody’s and Standard & Poor’s. The new issues have been assigned Baa2 ratings by Moody’s, BB+ by Fitch and BB+ by Standard & Poor’s.
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These materials do not constitute an offer for sale of any securities of TNK-BP Finance S.A or TNK-BP International Limited in the United States of America. No securities of TNK-BP Finance S.A or TNK-BP International Limited may be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Neither TNK-BP Finance S.A nor TNK-BP International Limited intends to register any portion of the offering in the United States or to conduct a public offering of any securities in the United States.
This press release is not a public offer or advertisement of securities in the Russian Federation, and is not an offer, or an invitation to make offers, to purchase any securities in the Russian Federation.
Forward—looking statements. Some of the information in this press release may contain projections or other forward—looking statements regarding future events or the future financial performance of TNK-BP Finance S.A or TNK-BP International Limited. We caution you that these statements are not guarantees of future performance and future performance involves risks, uncertainties, and assumptions that we cannot predict with certainty. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecasted in the forward—looking statements. We do not intend to update these statements to make them conform with actual results.
TNK-BP
TNK-BP is a major, vertically integrated Russian oil and gas company. In 2007, average daily oil production totaled 1.6 million barrels per day (excluding a 50% interest of Slavneft). TNK-BP operates five refineries (four in Russia and one in Ukraine) and nearly 1,600 branded retail outlets across both countries.
