Amid the constant bloviating out of Washington yesterday came some real news on the BP front courtesy of some excellent reporting from my colleague, Kate Kelly: BP could come to market with a massive bond offeringas early as next week.
For those thinking of buying BP stock, my call to action could not be more timely: Wait and see how that potential bond sale goes before doing anything.
Additionally, I wonder if any potential deal would need to include provisions that force BP to pay creditors more if its debt were to be downgraded.
Some are speculating a deal near $20 billion.
Don't get me wrong. BP brass doesn't view this as some type of "opportunistic financing," where they're taking advantage of low rates. This is a dose of bad medicine intended to shore up its balance sheet in the face of an overwhelming predicament.
Still, if this deal is a success, long-term investors can begin to assign some type of value to BP stock, and the uncertainty that surrounds the company today will begin to fade.
Only then will I like the idea of buying the BP.
BP's spokesperson had no comment.
- BP in Talks for Muti-Billion Debt Offering
- Angry Lawmakers Accuse BP CEO of Stonewalling
- US Congress Mauls Hayward
Programming note: "
Gary Kaminsky does not hold any equity positions.
The content of this blog is published in the United States of America and persons who access it agree to do so in accordance with applicable U.S. law.
All opinions expressed in this blog are solely the opinions of Gary Kaminsky and do not reflect the opinions of CNBC, NBC UNIVERSAL or their parent company or affiliates, and may have been previously disseminated on television, radio, internet or another medium. You should not treat any opinion expressed by Mr. Kaminsky as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Mr. Kaminsky’s opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Kaminsky, CNBC, its affiliates and/or subsidiaries are not under any obligation to update or correct any information provided on this website. Mr. Kaminsky’s statements and opinions are subject to change without notice. No part of Mr. Kaminsky’s compensation from CNBC is related to the specific opinions he expresses.
Past performance is not indicative of future results. Neither Mr. Kaminsky nor CNBC guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this website or on the show. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned on this website or on the show may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned on this website or on the show. Before acting on information on this website or on the show, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.