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BP holds steady on stock market amid debate over debt financing

BP holds steady on stock market amid debate over debt financing
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BP stock market shares proved resilient this week as traders cashed in on bargain prices.

The energy company is now considering debt financing options, including bank loans and corporate bond sales, reports Reuters.

Embattled since the oil spill in mid-April, the petroleum giant has already promised to suspend its dividends for three quarters and sell assets worth up to $10 billion (£6.7 billion) to pay for the clean-up operation and compensation.

Experts suggested BP would be best served by the loan market, as bonds issued would be trading at expensive levels.

"BP is a top investment grade name with no true liability and many big banks will want to hold loan assets of BP," commented one specialist to the news agency.

From a high of over 640p before the crisis, share prices have fallen to under 350p, losing around 30 per cent of their value.

The company is receiving advice from several financial heavy weights, including Goldman Sachs and Credit Suisse.

Posted by Greg SeckerADNFCR-1681-ID-19845623-ADNFCR