BP UNITS SEEK FIVE BILLION DLR REVOLVING CREDIT
BP International and BP North America
are seeking a five billion dlr, four year syndicated credit
facility in support of British Petroleum Co Plc's tender offer
for the 45 pct of Standard Oil Co it does not already own,
Morgan Guaranty Trust Co of New York said as arranger.
    The facility, to be guaranteed by British Petroleum Co Plc
<BP.L> is probably the largest credit facility ever arranged in
Europe, bond analysts said. Full terms will be announced either
later today or tomorrow morning. BP said earlier it planned a
tender offer for the 45 pct of Standard it does not already own
for 70 dlrs a share cash.
    The financing being arranged by Morgan Guaranty will take
the form of a fully committed revolving credit. As announced
earlier, BP also is arranging a U.S. Commercial paper program
in connection with the tender and part of the revolver will be
used to support that program.
    The exact size of the U.S. Program has not been decided and
the dealers have not yet been chosen.
    The credit facility will also allow the borrower to issue
cash advances with maturities of one, three or six months
through a tender panel, which will be comprised of banks
committed to the facility.
    Despite the unprecedented size of this euromarket facility,
Morgan Guaranty said that it was being syndicated only among
BP's relationship banks.
    As a result, banks were being offered lead manager status
at 200 mln dlrs, co-lead management at 125 mln and manager at
75 mln.
    Although pricing on many credit facilities has become
extremely fine in recent years because of the keen competition
to win mandates, Morgan Guaranty said banks would be
compensated fairly since this is a special purpose facility
which must be completed quickly, with signing expected in about
10 days.
 REUTER
