BP's plan to sell up to $10 billion of corporate debt will be popular among portfolio managers, Dennis Gartman, founder of the 'Gartman Letter,' told CNBC Thursday.
"I think it will be very well received," Gartman said. "I think every distressed bond portfolio in the world will say 'I get to own BP as a distressed bond issue?' I think that will fly."
As CNBC reported earlier Thursday, BP may auction $5 billion to $10 billion in debtas early as next week in order to boost both liquidity, or cash, as well as confidence, according to people familiar with the matter.
The company is in talks with Goldman Sachs, Morgan Stanley, Credit Suisse, Blackstone Stone Group, UBS about the offering, these people said.
"There will be portfolio managers out there itching to take that bond issue down," Gartman said. "You'd be getting a huge premium for the privilege of owning it."
Gartman's comments come as BP CEO Tony Hayward was grilled by US lawmakers on Capitol Hill about the Gulf of Mexico oil spill, the worst in US history.
"I'm embarrassed," Gartman said of the hearings, which were often contentious. "I'm embarrassed by what I heard, I'm embarrassed by the manner in which they treated this gentleman. I'm embarrassed by the manner in which the questions went on...It was just incredible the way it continued to go on and on."
BP's London-listed stock price was up Thursday, while the company's U.S.-listed shares were down slightly.