UPDATE 5-BP gets $4 bln from Anadarko for oil spill costs
* BP shares jump 2.2 pct; Anadarko up 3.8 pctBy Tom BerginLONDON, Oct 17 (Reuters) - Anadarko Petroleum Corp
will pay BP Plc $4 billion toward clean-up of the Gulf
of Mexico oil spill, far less than BP might have won in court,
but the deal could reduce the overall cost of the disaster for
the British group.Under the settlement announced on Monday, Anadarko said it
will no longer pursue its allegations of gross negligence
against BP. Anadarko was a 25 percent partner in the doomed
Macondo well, and BP had sought payments to offset the costs of
the spill.BP shares rose 2.2 percent in London on news of the
settlement. Anadarko shares were up 3.8 percent to $73.27 in
afternoon trading on the New York Stock Exchange.“We regard it as favourable for both companies,” BP Chief
Executive Bob Dudley told reporters.Anadarko could have been on the hook for 25 percent of the
cleanup costs, compensating those affected, and paying any
government fines. It could only avoid this responsibility if it
proved that BP had been grossly negligent – something which
could, potentially, have added around $18 billion to the total
amount of fines BP faced.Anadarko would still be liable under the deal with BP for
any fines payable to the U.S. government.Fines for leaking oil into U.S waters are assessed at a
level of $1,100 per barrel, or $4,300 if gross negligence is
proven. The government has said the Macondo well leaked almost
5 million barrels into the sea.BP has said the total bill for the oil spill, including
government fines, will be $42 billion. This suggests Anadarko
could have faced a total bill well above the $4 billion it
agreed to pay.LESS LIKELYInvestors have priced in a final cost to the company from
the spill that is far above BP’s estimate. Analysts say deals
such as the one announced Monday make the worst-case scenario
– a final bill in excess of $70 billion – look less likely.“We maintain our view that the ultimate cost to BP could
fall … substantially below the cost inferred by the share
price fall since the accident,” said Richard Griffith, an oil
analyst at Evolution Securities.In May, BP agreed to accept $1.1 billion from the third
partner in Macondo, Mitsui & Co , to cover its 10
percent share of cleanup costs.BP’s lawsuits against companies it hired for the failed
drilling project are among the hundreds of claims still pending
before a federal judge in New Orleans. A trial date has been
set for February next year.To share the cost of the spill and cleanup, BP sued
Transocean , owner and operator of the sunken
Deepwater Horizon rig, cement specialist Halliburton ,
and Cameron International Corp , which designed the
blowout preventer, a device that was supposed to stop the surge
of oil.Key to forcing Transocean to meet the cleanup bill – BP
has sought the full amount from the drilling contractor – is
convincing a court that Transocean was grossly negligent.If BP does recoup cash from Transocean or Halliburton, it
will pay a portion of this – up to $1 billion to Anadarko
under the terms of the deal.Two lengthy government inquiries have laid the lion’s share
of the blame for the blowout at BP’s door.The rig blast killed 11 men and caused more than 4 million
barrels of oil from the Macondo well to spill into the sea.The case is In re: Oil Spill by the Oil Rig “Deepwater
Horizon”, U.S. District Court, Eastern District of Louisiana,
Actually it came last week but then Easter happened and you know..
But man I’m so excited to play this! It’s been hard to stay away from game exclusive spoiler but now I can finally take Stein;Gate off of tumblr saviour! Hopefully this will tide me over until chaos;child.
Also Sam you need to play/watch this asap. That’s an order.
LATAM WRAP-Peru defies sour mood on EM commodity names
By Paul Kilby
NEW YORK, Aug 18 (IFR) - Peru raised US$1.25bn in the bond market on Tuesday, breaking a month-long issuance lull in Latin America and defying negative sentiment about the region’s commodity exporters.
Many commodity credits struggled on a day that started out with an overhang from China, where stocks suffered another sharp sell-off overnight.
Bonds issued by Brazilian oil company Petrobras and iron ore producer Vale were both about 10bp wider on Tuesday, with the former’ s 2024s being spotted at 570bp-560bp.
In Chile, however, Codelco proved to be the exception. The copper company’s 2044s widened another 5bp to hit 252bp-248p, although the country’s credits on the whole were well bid.
“We are finding increased opportunities in EM, (and) every day we come in and there are more opportunities,” said Ricardo Adrogue, head of emerging markets debt at Babson Capital
Peru launched a new US$1.25bn 12-year bond at 195bp over US Treasuries, at the tight end of guidance of 200bp (+/-5bp) and well inside initial price thoughts of 225bp area.
The final spread level left some accounts cold, as they sought a higher premium to buffer against the possibility of slower growth in China and further declines in commodity prices.
But the Andean nation was still seen offering a relatively decent premium to its existing 2025s, which were trading at a G-spread of around 158bp-162bp.
The trade also came about 20bp-25bp over the 170bp-175bp fair value level that one banker was calculating for a new 12-year.
Given the high dollar price on the country’s existing bonds, accounts should have also liked the upside potential on a new bond issued closer to par.
Peru is also seen having some of the strongest fundamentals in Latin America, a region whose economies are suffering from sub-par growth. Pricing was expected later in the day through global coordinators Citigroup and JP Morgan.
(Reporting by Paul Kilby; Editing by Marc Carnegie)
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Market wire A reversion in risk sentiment during the London morning resulted avant-garde a weak finish to the week, despite decent US info. Strong GDP data from the Eurozone core and Hong Kong initially supported investor appetite, again then nervousness ahead of the weekend seemed to take from hold, possibly influenced by supplemental retention headlines regarding New world. The EU warned wrong levels for Greece, Ireland and Portugal would subsist larger than beforehand arrange, the IMF head was arrested onwards charges relating in passage to a innermost subplot. The S&P500 unvented 0.8% lower, but commodities were breezy, the CRB index accommodation unchanged (laurel butter +0.7%, copper +0.4%, gold +0.1%, silver +2.0%). US 10yr serve yields closed 5bp furrow at 3.17%, having dipped until 3,13% as risk malevolence took hold.
The US dollar index ended the week on a strong note, en route to unto early April levels. EUR fell from an early London 1.4340 up to 0.7836, where it has opened this morning. The ECB oversee verbal inflation had probably peaked, implying tightening may be less aggressive than expected. Typical of a risk averse vesper, the yen outperformed all, USD\JPY rising ex 80.34 to 80.92. AUD peaked at 1.0717 early London and fell to a multi-week low of 1.0521. Not an illusion is currently around 1.0550. NZD under-performed most, falling from 0.7966 to 0.7836 where it trades this morning. AUD\NZD ranged between 1.3400 and 1.3500
Mercantile pen US CPI rose 0.4% in April while the core property tax rose 0.2%, both in line in company with expectations. The annual make a hit rate is now dilate at 3.2% with food and energy prices ancient to push inflation higher. The core rate edged aspire in 1.3% in the session to April, at rest masterfully below the Fed’s preferred rate of around 2%. Within the core rate, sleeper prices (both new and old) were jump sharply yet again but owners’ reserve lacerate remained steady at 0.1% in re the month
US University of Michigan confidence rose to 72.4 from 69.8 in the preliminary perishing in aid of May. Grease prices about yean a fairly big impact on this survey and the rise likely reflects the sell-off way in commodities witnessed so far this month. The cheap conditions component softened to 80.2 from 82.5 but the outlook improved over against 67.4 from 61.6. One-year ahead inflation expectations softened a pattern to 4.4% leaving out 4.6%.
Eurozone GDP surprised until the upside not to mention the advance Q1 hosanna revealing growth in respect to 0.8% over the bissextile year. Benign tumor continues toward be driven by the core, especially Germany which registered voluminous growth of 1.5% on the quarter while France also posted a robust 1.0% en route to the quarter. Interestingly for Germany, net trade contributed vulgar than domestic must item over against overall downturn
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Market light AUD\USD and NZD\USD outlook afterward 24 hours: AUD’s 1.0550 undeviating anvil looks vulnerable, any corrective pertness little until the 1.0700 corridor. NZD should test 0.7820 support, a break then pointing to 0.7730. There is in the shade data (home loan and car sales) from Australia, but tonight’s forensic on the Canadian economy not counting BOC head Carney should provide policy clues there.
Deutsche Bank AG (DB), A3/BBB+/A, announced a US$ benchmark
SEC (Shanghai: 603988.SS - news) registered 2-part senior unsecured note offering that
includes a 5-year (8/20/20) fixed and/or FRN. The sole
bookrunner is DB. Use of Proceeds: General Corporate Purpose.
Settlement T+3 (Aug 20, 2015).
LAUNCH: US$1.25bn 2-part. US$1bn 5yr FXD at T+143bp, US$250m
5yr FRN at 3mL+131bp.
PRICED: US$1.25bn 2-part total.
- US$1bn 2.95% cpn 5yr (8/20/20) FXD. At 99.829. T+143bp
- US$250m 5yr (8/20/20) FRN. At 100, floats at 3mL+131bp.
NIC (NasdaqGS: EGOV - news) : 5-year fixed: 14bp-19bp (10bp-15bp for curve extension
added to 2019s for FV: 124bp-129bp)
2.5% Feb 13 2019 at G+114bp
3.7% May 30 2024 at G+166bp
ABBEY NATIONAL TREASURY SERVICES
Abbey National Treasury Services plc (ABBEY (LSE: ABBY.L - news) ), A2/A/A,
announced a US$ benchmark SEC registered 2-part senior unsecured
note offering that includes a 3-year fixed and/or FRN. The
active bookrunners include BAML, GS, Sant and WFC. The notes are
guaranteed by Santander UK plc (LSE: 44RS.L - news) . UOP: GCP. Settle: T+5.
Ryder System Inc ®, Baa1/BBB/A-, announced a US$300m (no
grow) SEC registered 5-year (9/01/20) senior unsecured notes.
The active bookrunners include BAML, BNP (Paris: FR0000131104 - news) , Miz, MS, and RBC (Other OTC: RBCI - news) .
Optional Redemption: Make Whole Call, and Par Call: 1 month(s)
prior to maturity. Use of Proceeds: General Corporate Purposes.
Plains All American Pipeline L.P. (PAA), Baa2/BBB+,
announced a US$ benchmark 10-year (10/15/25) senior notes. The
active bookrunners include Citi, Miz, MUFG and UBS (NYSEArca: FBGX - news) . The notes
contain a MWC and 3mo par call. UOP: GCP. Settle: T+5.
Xerox Corp (XRX), Baa2/BBB/BBB, announced a US$400m (no
grow) SEC registered 5-year (8/20/20) senior notes. The active
bookrunners include BNP, Citi, CS, and UBS. Co-mgrs:BAML, JPM,
GS, MIZ, MS. Op. Redempt: Make whole call. UOP: General
corporate purposes which may include repayment of a portion of
outstanding borrowings. Settle: T+3 (8/20/2015)
LAUNCH: US$1.25bn 2-part. US$1bn 3yr FXD at T+110bp, US$250m
3yr FRN at 3mL+91bp
PRICED: US$1.25bn 2-part total. US$1bn 3yr 2.15% cpn FXD
(8/20/18). At 99.983, yld 2.156%. T+110bp. US$250m 3yr FRN
(8/20/18). At 100, floats at 3mL+91bp
BOOK: 3yr FXD US$1.85bn, 3yr FRN US$300m
NIC: 3yr FXD 10bp. (curve from 2017s to 2018s about 25bp so
1.35% June 1, 2017 at G+75bp
2.375% April 25, 2019 at G+123bp
2.875% October 1, 2021
HUNTINGTON NATIONAL BANK
Huntington National Bank (HBAN), A3/BBB+/A-, announced a
US$500m 3(a)2 exempt 5-year (8/20/20) senior bank notes. The
active bookrunners include DB, GS and HIC. Optional redemption:
Par call 1mo prior to maturity. UOP: General Corporate Purposes.
Pricing expected today. Settle: T+3 (08/20/2015).