MPLX LP prices $3 billion senior notes offering

Rhea-AI Summary

MPLX LP (NYSE: MPLX) has priced $3 billion in unsecured senior notes. This includes $1.5 billion of 1.75% senior notes due in 2026 and $1.5 billion of 2.65% senior notes due in 2030. The notes were offered at 99.785% and 99.913% of par, respectively. Proceeds will be used to repay existing debts, including a $1 billion term loan maturing in 2021 and various senior notes due in 2021, 2022, and 2024. The offering is expected to close on August 18, 2020. RBC Capital Markets, J.P. Morgan, and MUFG are the joint book-running managers for the offering.

Positive

• MPLX is securing $3 billion in funding through senior notes, enhancing liquidity.
• The offering allows MPLX to refinance existing $1 billion term loans and other senior notes, potentially reducing interest expenses.

Negative

• MPLX's reliance on debt financing could increase financial risk.
• Issuing new debt may lead to higher interest obligations in the long term.

FINDLAY, Ohio, Aug. 11, 2020 /PRNewswire/ -- MPLX LP (NYSE: MPLX) announced today that it has priced $3,000,000,000 in aggregate principal amount of unsecured senior notes in an underwritten public offering consisting of $1,500,000,000 aggregate principal amount of 1.75% senior notes due in 2026 (the "2026 senior notes") and $1,500,000,000 aggregate principal amount of 2.65% senior notes due in 2030 (the "2030 senior notes").

The 2026 senior notes and 2030 senior notes were offered at a price to the public of 99.785% of par and 99.913% of par, respectively.

MPLX intends to use the net proceeds from this offering to repay or redeem existing indebtedness, including, without limitation, (i) the $1 billion term loan borrowing maturing in 2021, (ii) the $1 billion aggregate principal amount of its floating rate senior notes due 2021, (iii) the $300 million aggregate principal amount of its 6.250% senior notes due 2022 (including the approximately $34 million in aggregate principal amount of senior notes issued by Andeavor Logistics LP and Tesoro Logistics Finance Corp.) and (iv) the $450 million aggregate principal amount of its 6.375% senior notes due 2024 (including the approximately $69 million in aggregate principal amount of senior notes issued by Andeavor Logistics LP and Tesoro Logistics Finance Corp.). Any remaining net proceeds will be used for general partnership purposes. 

The closing of the senior notes offering is expected to occur on Aug. 18, 2020, subject to satisfaction of customary closing conditions.

RBC Capital Markets, LLC; J.P. Morgan Securities LLC; and MUFG Securities Americas Inc. are acting as joint book-running managers for the offering.

This offering is being made only by means of a prospectus and related prospectus supplement, which may be obtained for free by visiting the Securities and Exchange Commission's website at http://www.sec.gov. Alternatively, copies may be obtained by contacting the following, who are acting as representatives of the underwriters:

RBC Capital Markets, LLC
200 Vesey Street, 8th Floor
New York, NY 10281
Toll-Free: (866) 375-6829

J.P. Morgan Securities LLC
383 Madison Avenue
New York, New York 10179
Collect: (212) 834-4533

MUFG Securities Americas Inc.
1221 Avenue of the Americas, 6th Floor
New York, NY 10020
Attn: Capital Markets Group
Toll-Free: (877) 649-6848

This news release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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 petroleum 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 Contacts: (419) 421-2071
Kristina Kazarian, Vice President, Investor Relations
Evan Barbosa, Manager, Investor Relations
Jim Mallamaci, Manager, Investor Relations

Media Contacts:
Hamish Banks, Vice President, Corporate Communications (419) 421-2521
Jamal Kheiry, Manager, Corporate Communications (419) 421-3312

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SOURCE MPLX LP

FAQ

What is MPLX's recent senior notes offering?

MPLX recently priced $3 billion in unsecured senior notes, consisting of $1.5 billion in 1.75% notes due in 2026 and $1.5 billion in 2.65% notes due in 2030.

How will MPLX use the proceeds from the senior notes offering?

The proceeds will be used to repay existing indebtedness, including a $1 billion term loan and several senior notes maturing in the coming years.

When is the expected closing date for MPLX's senior notes offering?

The closing of MPLX's senior notes offering is expected to occur on August 18, 2020.

Who are the underwriters for MPLX's senior notes offering?

RBC Capital Markets, J.P. Morgan Securities, and MUFG Securities are the joint book-running managers for MPLX's senior notes offering.