BP pricing environmental facilities revenue refunding bonds

BP Products North America plans to price $300 million of refunding environmental facilities revenue bonds on Tuesday.

The bonds will be issued through the city of Whiting, Indiana, and will refund debt BP issued in 2014 to fund the costs of acquiring constructing and improving certain sewage facilities constituting pollution control facilities at the crude oil refinery plant near Whiting.

A BP Plc logo sits on a totem sign outside a gas station operated by BP Plc in London, U.K., on Tuesday, Feb 2., 2016.
A BP Plc logo sits on a totem sign outside a gas station operated by BP Plc in London, U.K., on Tuesday, Feb 2., 2016. BP Plc reported a 91 percent decline in fourth-quarter earnings after average crude oil prices dropped to the lowest in more than a decade. The company's shares fell the most since August. Photographer: Simon Dawson/Bloomberg

The series 2019 bonds will be issued in an multi annual mode. The bonds are secured by BP, and not by a mortgage on or a security interest in the project, according to bond documents.

The bonds will mature on December 1, 2044 and are subject to a mandatory tender for purchase. BP has $912 million of environmental facilities revenues bonds outstanding issued through Whiting.

Chapman and Cutler LLP is the bond counsel. Bank of America Merrill Lynch and Goldman Sachs & Co. LLC are co-senior managers.

The BP Whiting Refinery is the largest refinery in the Midwest and the biggest one in BP's global portfolio, producing more than 10 million gallons of gasoline, 3.5 million gallons of diesel and 1.7 million gallons of jet fuel a day. It supplies gas to seven Midwestern states and produces 5% of the nation's asphalt.

Whiting issues bonds on behalf of BP as part of an Indiana program administered by the Indiana Finance Authority that allows local municipalities to issue tax-exempt bonds on behalf of manufacturing and industrial companies located in their districts. Under Internal Revenue Service rules, the bonds must finance pollution-control projects in order to qualify for tax exemption.

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Primary bond market Indiana
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