With the yield on BP (NYS:BP) bond's rising to 539 basis points, or 5.39 percentage points, skyrocketing from the 41 basis points just before the April 20 accident on the Deepwater Horizon oil rig, the company may have to pay out up to $500 more a year in costs related to interest to raise the $10 billion they're attempting to secure.
Costs for the overall oil spill have already surpassed $2 billion, and the company is attempting to prepare for the worst case scenario, by raising money through a variety of means, including bonds.
But that doesn't mean they're going to be all over the place in raising the needed capital, as they're probably going to do it through a few outlets and deals, and not through a large number of them.
BP has been negotiating with banks over the first bond issuance since the accident happened, with their last bond issue being in March.
The initial bond offering is to offer $10 billion in notes, possibly as early as this week, in an effort to raise up to $50 billion, which will also include loans and selling off of some assets, according to the Sunday Times.
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