Marathon Petroleum Corp. announces redemption of outstanding 5.125% senior notes due 2024

Rhea-AI Summary

Marathon Petroleum Corp. (NYSE: MPC) is set to redeem all $300 million of its outstanding 5.125% senior notes due April 1, 2024. This decision aligns with the company's strategy to decrease long-term structural debt. The notes will be redeemed at 100.854% of the principal amount, plus accrued interest. The portion issued by MPC is expected to be redeemed on June 18, 2021, and the notes obligated by Andeavor LLC on June 1, 2021. This announcement serves as an informational release, not a solicitation to buy or sell the notes.

Positive

• Redemption of $300 million in senior notes reduces long-term debt.
• Strategic financial management demonstrated by planned redemptions.

Negative

• None.

FINDLAY, Ohio, May 19, 2021 /PRNewswire/ -- Marathon Petroleum Corp. (NYSE: MPC) today announced the redemption of all of the $300 million outstanding aggregate principal amount of its 5.125% senior notes due April 1, 2024, including the portion of such notes for which Andeavor LLC, a wholly-owned subsidiary of MPC, is the obligor. The redemption of the 2024 senior notes is part of MPC's previously announced plans to reduce long-term structural debt.

The 2024 senior notes are being redeemed at a price equal to 100.854% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date. The portion of the 2024 senior notes issued by MPC is expected to be redeemed on June 18, 2021. The portion of the 2024 senior notes for which Andeavor LLC is the obligor is expected to be redeemed on June 1, 2021.

This news release is for informational purposes only and is neither an offer to buy nor a solicitation to sell any of the 2024 senior notes. The foregoing does not constitute a notice of redemption under the indentures governing the 2024 senior notes and is qualified in its entirety by the redemption notices distributed to the holders of the 2024 senior notes under such indenture.

About Marathon Petroleum Corporation

Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation's largest refining system. MPC's marketing system includes branded locations across the United States, including Marathon brand retail outlets. MPC also owns the general partner and majority limited partner interest in MPLX LP, a midstream company that owns and operates gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure. More information is available at www.marathonpetroleum.com.  

Investor Relations Contacts: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Taryn Erie, Manager, Investor Relations
Brian Worthington, Manager, Investor Relations

Media Contacts: (419) 421-3312
Jamal Kheiry, Communications Manager

 

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SOURCE Marathon Petroleum Corporation

FAQ

What is the total amount of senior notes Marathon Petroleum plans to redeem?

Marathon Petroleum plans to redeem $300 million of its outstanding senior notes.

What is the interest rate on the senior notes being redeemed by MPC?

The senior notes being redeemed have an interest rate of 5.125%.

When will the senior notes due in 2024 be redeemed?

The portion issued by MPC will be redeemed on June 18, 2021, and the portion for which Andeavor LLC is the obligor will be redeemed on June 1, 2021.

How much will Marathon Petroleum pay for the redemption of the senior notes?

The senior notes will be redeemed at 100.854% of the principal amount, plus accrued interest.

What is the purpose of redeeming the senior notes by Marathon Petroleum?

The redemption is part of Marathon Petroleum's strategy to reduce long-term structural debt.