MPLX LP announces redemption of senior notes

Rhea-AI Summary

MPLX LP (NYSE: MPLX) announced the redemption of all outstanding senior notes, totaling $500 million for both the 3.500% notes due Dec. 1, 2022, and the 3.375% notes due March 15, 2023. The 2022 notes are slated for redemption on or about Aug. 25, 2022, while the 2023 notes will be redeemed on or about Sept. 15, 2022. Redemption prices will be at par or make-whole payment plus accrued interest. This announcement is strictly informational and does not constitute an offer to buy or sell the notes. MPLX operates midstream energy infrastructure, including pipelines and terminals.

Positive

• Redemption of $500 million 3.500% senior notes due Dec. 1, 2022, reducing future interest payments.
• Redemption of $500 million 3.375% senior notes due March 15, 2023, indicating strong liquidity management.

Negative

• None.

FINDLAY, Ohio, Aug. 15, 2022 /PRNewswire/ -- MPLX LP (NYSE: MPLX) today announced the redemption of (i) all of the $500 million outstanding aggregate principal amount of MPLX's 3.500% senior notes due Dec. 1, 2022 (including the portion of such senior notes issued by Andeavor Logistics LP and Tesoro Logistics Finance Corp.) and (ii) all of the $500 million outstanding aggregate principal amount of MPLX's 3.375% senior notes due March 15, 2023.

The 2022 senior notes are expected to be redeemed on or about Aug. 25, 2022 at a price equal to the greater of par or the make-whole payment calculated in accordance with the terms of the 2022 senior notes, plus accrued and unpaid interest to, but not including, the redemption date. 

The 2023 senior notes are expected to be redeemed on or about Sept. 15, 2022 at a price equal to the greater of par or the make-whole payment calculated in accordance with the terms of the 2023 senior notes. The regular semiannual interest payment due on the 2023 senior notes on Sept. 15, 2022, will be paid in the usual manner to holders of record at the close of business on Sept. 1, 2022.

This news release is for informational purposes only and is neither an offer to buy nor a solicitation to sell any of the 2022 senior notes or the 2023 senior notes. The foregoing does not constitute a notice of redemption under the indentures governing the 2022 senior notes and the 2023 senior notes and is qualified in its entirety by the redemption notices distributed to the holders of the 2022 senior notes and 2023 senior notes under such indentures.

About MPLX LP

MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins.

Investor Relations Contact: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Jamie Madere, Manager
Isaac Feeney, Analyst

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

 

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SOURCE MPLX LP

FAQ

What senior notes is MPLX redeeming?

MPLX is redeeming its $500 million 3.500% senior notes due Dec. 1, 2022, and $500 million 3.375% senior notes due March 15, 2023.

When will MPLX redeem its 2022 senior notes?

MPLX plans to redeem the 2022 senior notes on or about Aug. 25, 2022.

What is the redemption price for MPLX's senior notes?

The redemption price will be the greater of par or the make-whole payment plus accrued interest.

How does the redemption affect MPLX's financials?

The redemption reduces MPLX's future interest obligations, benefiting cash flow.

Will holders of the 2023 senior notes receive their interest payments?

Yes, holders will receive the regular semiannual interest payment on Sept. 15, 2022.