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BP Planning $10 Billion Debt Issue
CNBC reporting that BP is preparing to launch a $10 billion bond issue. It is unclear if that other most loved company in America, Goldman Sachs, will be lead underwriter. The fact that the firm is willing to come to market at a time when its 5 year spreads are in the 500 bps ballpartk is very troubling, and likely indicative that courtesy of counterparty arranagements collapsing, the oil company's access to liquidity must be getting problematic. Whether or not this is also a signal that the firm anticipates much greater cash outflows than just the $20 billion escrow is unclear, but seems likely, as BP will now do all it can to shore up as much liquidity as it can. At least the firm did not announce a stock underwriting at this new baseline stock price, which would be a huge blow to equity longs.
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Oh boy. May I please be first in line to buy that dogshit.
How fucking stoopid doo thay thenk we ar?
I'm calling bullshit on the $20 billion fund. I smell a backdoor bailout folks. In my opinion this debt offering will be underwritten by Goldman, bullshit assets will be pledged, Aaa-okay rating will be obtained, and the Federal Reserve Bank will secretly buy whatever can't be unloaded in the marketplace. You people are missing the deep deep political connections that BP has in the world. One way or another the US and UK central bankers will bail them out. Capitalism has left the room.
Agreed, it is nothing but another slush fund controlled by the parasite pay czar.
It's ok. People in Haiti are still living in tents. But they'll be dead soon from disease. So they know how to handle this stuff.
I tend to agree that there is much more here than meets the eye. And I'm not talking about the problems with the actual GOM well gusher. Many people don't understand that the real "powers that be" reside in Europe, specifically Germany and England, which has a royal linkage as well as a centuries long financial connection at the hip.
If we believe our own press about the USA being the financial capital of the world, we're allowing the real power, based out of Europe, a free rein. Ignore the economy of Europe. Understand that real power transcends economic blips and even collapses.
Are the "powers that be" in England and Germany in cahoots or competing? If in cahoots, why WWI&II?
Thanks.
Big profits for the banks and contractors on both sides. War is very lucrative. That's why governments love war.
I don't pretend to have all the answers. But my studies indicate that there are many levels of power in the world and countries can be at war and still be colluding at the same time, usually through central banks and certain key individuals. What we read in the papers is the cover story, the public reason for what's going on.
Sure there is infighting between powers that be. Sure there are scandals. But we don't know what's going on under the covers. And German and British power go back centuries, well before America was an accidental wet dream for Columbus. Most people have no idea that the royal family has deep German roots and still maintains close ties to their German descendants. And that the Royal family has deep ties in the financial community.
Look at the Bush legacy and WW2 for an glaring example of playing both sides of the fence. War is an extremely profitable enterprise, both for countries, corporations, individuals and central banks. Everyone wins except the people. This is all well documented but completely ignored by most people, who still consider it history and not reality. Whistling past the grave.
Red Dragon Bloodline series on YouTube is a start.
Then:
http://www.youtube.com/watch?v=7l8lQgD4O7s
and Lincoln was born Springsteen: a Rothschild scion.
Did you have the pleasure of watching Tony Hayward on the hill? It's either due his overbreeding, too much exposure to chemicals, or genuine soul--that he could be so smug, almost smiling at his own smugness.
There was no doubt that he considers the Congress critters to be a lower class, no better than house flies or mosquitoes he was swatting away on those hot GOM (photo op) beaches. I was delighted to see his was able to tolerate such uppity behaviour by the power class.
Can't wait for round 2 of smugness. I'd like to give him his life back--right where he deserves it--from Bubba.
Howard Beale
"a little person"
over-breeding? Let me make this small correction, in-breeding.
Thanks I feel better. They are all royal related. Only royal relations get to be POTUS or close to POTUS. They are an in-breed apart.
/cue the banjos, Tyler/
http://www.youtube.com/watch?v=1tqxzWdKKu8
check out the look on Haywards face after he left the whitehouse meeting yesterday
CNN late last evening
Did BP pull one over on the whitehouse?
http://www.youtube.com/watch?v=dnVi155xfHw
Did BP pull one over on the whitehouse?
dewd, dewd, they're on the same team. you're not getting it.
It is the look of a man who has just been sucked off to absolute satisfaction.
I am Chumbawamba.
I couldn't agree more Careless. Something smells 'fishy' (no pun intended) with both the $20b fund and the $10b debt float. These guys (BP) are the 4th largest corporate entity in the world and the largest in the UK. As we've read, they represent the largest portion of retirement funds for a significant percentage of UK citizens. If BP were to go belly-up, the fallout in the UK alone would make Lehman's collapse look like a one day trading blip. BP will be bailed out and left standing upright when all is said and done and I have a feeling that 9 out of every 10 dollars that they (a quiet cabal of FED, ECB, BofE) do end up paying will go directly to the US Gov't and a few state agencies. Those poor 'little' people along the coast will be lucky to ever see a dime.
They'll see plenty of dimes, and those will come from your pocket, if you pay taxes in the U.S.
Deep political connections did not work in Russia, but there were likely deeper once already there.
Are you saying that the White House will pull a Yukos?
Careless, you sniff a good trail.
Remember the recent article, UK's astronomical increase in real and percentage terms of LONG US paper?
Tradeoff 101!
There is the British retiree to think about you know!
ORI
http://aadivaahan.wordpress.com
There is the stealth violation of the English retiree to think of. /Squid Hard-on!/
Don't underestimate the immense stupidity of pension fund managers.
I have been told of at least 1 person who is accumulating BP stock. BTW, he's an Aggie grad and a west Texas oilman.
I just realized I have seen this movie before:
Bilderberg is the Governor & Rail Road, Obama is the sheriff (but totally incompetent) and the USA is Rock Ridge.
I want Mongo on my side.
Is it a coincident that Bill Gross was pimping BP debt yesterday?
from a note I rec'd this am:
It's a race now...a race to drill the relief wells and take our last chance at killing this monster before the whole weakened, wore out, blown out, leaking and failing system gives up it's last gasp in a horrific crescendo. We are not even 2 months into it, barely half way by even optimistic estimates. The damage done by the leaked oil now is virtually immeasurable already and it will not get better, it can only get worse. No matter how much they can collect, there will still be thousands and thousands of gallons leaking out every minute, every hour of every day. We have 2 months left before the relief wells are even near in position and set up to take a kill shot and that is being optimistic as I said. Over the next 2 months the mechanical situation also cannot improve, it can only get worse, getting better is an impossibility. While they may make some gains on collecting the leaked oil, the structural situation cannot heal itself. It will continue to erode and flow out more oil and eventually the inevitable collapse which cannot be stopped will happen. It is only a simple matter of who can "get there first"...us or the well. We can only hope the race against that eventuality is one we can win, but my assessment I am sad to say is that we will not. The system will collapse or fail substantially before we reach the finish line ahead of the well and the worst is yet to come. Sorry to bring you that news, I know it is grim, but that is the way I see it....I sincerely hope I am wrong. We need to prepare for the possibility of this blow out sending more oil into the gulf per week then what we already have now, because that is what a collapse of the system will cause. All the collection efforts that have captured oil will be erased in short order. The magnitude of this disaster will increase exponentially by the time we can do anything to halt it and our odds of actually even being able to halt it will go down. The magnitude and impact of this disaster will eclipse anything we have known in our life times if the worst or even near worst happens... We are seeing the puny forces of man vs the awesome forces of nature. We are going to need some luck and a lot of effort to win... and if nature decides we ought to lose, we will....
That's from a post on ToD, been going around all week. Here is the original; I see that ToD has added a disclaimer to the top:
http://www.theoildrum.com/node/6593#comment-648967
If the jagged piece of steel had to be removed by sawing then a shear, does it not stand to reason that the steel is not being eroded?? As I mentioned the 70,000 psi figure would eroder the materials due to the bulk modulus of the steels. But at 10,800 psi- this erosion will not take place.
That is a post by DougR on the oildrum website from 6/13.
Here's your chance to contribute to BP's "Gulf Recovery Fund".
I am Chumbawamba.
You are so right, but I'll pass all the same.
That last post went horribly wrong, I feel like a government regulator now.
thank you. nice catch.
if you will, please read this: http://beforeitsnews.com/news/76/057/Scientists_Warn_Gulf_Of_Mexico_Sea_Floor_Fractured_Beyond_Repair.html
Don't buy the bonds; if your portfolio contains a bond fund, tell them you're going to sell if they take any of this offering.
That's why Bill Gross is cheer leading BP!
http://www.bloomberg.com/apps/news?pid=20601102&sid=abB4SRejx7Po
That explains the selling of BP stock by BP insiders and Goldman Sachs.
agreed!
Need to read that prospectus and check on the seniority of this new debt.
Read up on Jesse Livermore folks. This has got to be the loudest sell signal that ever sounded.
Why only $10 Billion? Why not $30 MMM so they can fund the peasants (leetle peeple) in the Gulf and keep a little for themselves before the implosion? In Euros or dollars, an extra $10 MMM will still buy a decent house and meals and other tasty treats for a decade or two in Cannes or Nice.
Yay! GOM Bonds! Each one includes a free dead pelican!
Instead of clipping coupons, you send in a tar ball every quarter and they send you back a ton of genuine fresh GOM tar sands that you can turn into valuable crude oil (if you happen to live in northern Alberta).
If BP believes that at some point it will be forced into into chapter 11 bankruptcy in the USA then it makes sense to borrow as much money as possible under the BP USA umbrella.
This money can be used to pay for the ongoing cleanup rather than using cash/assets currently sat outside of the control of the US authorities i.e. in London. This would limit their liability outside BP USA to some extent.
Of course the US government could take BP to court in London but after what we have seen this week I predict they won't a get very fair hearing.
Yep. The noteholders should be prepared to receive the face value of their notes multiplied by x/y -- where x is the value of assets held by BP North America and y is infinity. Doesn't seem like a real good outcome.
Those EURUSD bullish warnings have
strengthened further today.
Vice versa for the USD index of course.
It seems the current EURUSD downleg has ended.
http://stockmarket618.wordpress.com
By issuing bonds, BP can threaten to create another AIG situation.
It's a fireline against the encroaching lawyers.
It's like saying... "If I go down, I'm taking you with me."
They're strapping nukes to their chests and are waving around the detonator.
"Do you feel lucky, punk? Do ya?"