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Marathon Oil begins tender offer for up to $500 million 2.8% notes
By Taylor Fox
New York, Sept. 16 – Marathon Oil Corp. has begun a cash tender offer for up to $500 million of its outstanding $1 billion 2.8% senior notes due 2022 (Cusip: 565849AK2), according to a news release.
The offer will expire at 11:59 p.m. ET on Oct. 14.
The total consideration will be determined by reference to a fixed spread of 20 basis points, plus a yield based on the bid-side price of the 0.125% U.S. Treasury due Aug. 31, 2022 at 10 a.m. ET Sept. 30.
Noteholders must validly tender and not validly withdraw the notes prior to or at 5 p.m. ET on Sept. 29 to be eligible to receive the total consideration, which includes an early tender premium of $50 per $1,000 principal amount.
Holders tendering after the early tender time will be eligible to receive an amount equal to the total consideration less the early tender premium.
The company will also pay accrued interest.
Notes validly tendered and not validly withdrawn at or prior to the early tender time will be accepted for purchase in priority to other notes validly tendered after the early tender time.
If the maximum tender amount is reached at or prior to the early tender time, no notes that are tendered after the early tender time will be accepted for purchase unless the maximum tender amount is increased by the company, in its sole discretion.
In addition, if the offer cap is exceeded, notes purchased in the offer will be prorated.
The withdrawal deadline is 5 p.m. ET on Sept. 29.
Payment for early tendered notes will be made on Oct. 1. The final settlement date is expected to be Oct. 16.
D.F. King & Co., Inc. (212 269-5550, 866 416-0576; mro@dfking.com) is the tender agent and information agent.
J.P. Morgan and Securities LLC (866 834-4666, 212 834-3424) and TD Securities (USA) LLC (855 495-9846, 212 827-7381) are the lead dealer managers.
Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are co-dealer managers.
The energy company is based in Houston.
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