BP CREDIT FACILITY SUBSTANTIALLY OVERSUBSCRIBED
A five billion dlr credit facility being
arranged for two units of British Petroleum Co Plc <BP.L>
attracted over 15 billion dlrs in syndication but will not be
increased, Morgan Guaranty Ltd said on behalf of Morgan
Guaranty Trust Co of New York, the arranger.
    It said that 64 of BP's relationship banks will be joining
the facility, although their participations will be cut back
dramatically. Banks had been invited as lead managers at 200
mln dlrs, managers at 125 mln and co-managers at 75 mln.
    BP will make the final decision on the allotments broadly
based on relationships rather than on the amounts offered.
    The facility is being arranged for BP International and BP
North America in conjunction with the company's planned tender
offer for the 45 pct of Standard Oil Co it does not already
own.
    Because of the purpose of the facility, Morgan only had
five business days to arrange the facility. As a result, it
carried terms that bankers considered relatively favourable
when compared with those on most other recent credits. The
facility fee, for example, was 1/8 pct compared with the 1/16
pct BP paid on a recent 1.5 billion dlr refinancing.
 REUTER
