BP Pays 3 Times Interest for Loans Amid Spill Costs
This article is for subscribers only.
BP Plc is paying almost three times its 2009 borrowing rate to shore up its finances amid costs to clean up the Gulf of Mexico spill that could reach $50 billion.
Europe’s second-biggest oil company is marketing $5 billion of five-year loans with interest starting at 2.5 percentage points more than benchmark rates, two people familiar with the terms said. That compares with BP’s 1 percent all-in cost to borrow $20.6 billion of floating-rate debt last year, according to the company’s annual report in February.