Oil giant BP is not planning a new bond sale, sources familiar with the matter said on Monday and instead plans to extend bank credit lines to ensure it has enough cash to pay for the Gulf of Mexico oil spill clean-up.
BP has considered a number of different scenarios to raise additional cash, should the need arise, such as additional assets sales and a potential bond offering but, for now, the company is confident its cash resources can cover the bulk of the clean-up costs, one source said.
BP is seeking to arrange credit lines of up to $7 billion from banks, banking sources told Reuters last week.