Marathon Petroleum, MPLX enter two revolvers totaling $7 billion

By Wendy Van Sickle

Columbus, Ohio, July 12 – Marathon Petroleum Corp. entered into a $5 billion five-year revolving credit agreement, and MPLX LP, a Delaware master limited partnership sponsored by Marathon Petroleum, entered a $2 billion five-year revolver on July 7, according to an 8-K filing with the Securities and Exchange Commission.

Marathon Petroleum revolver

JPMorgan Chase Bank, NA is the administrative agent, and each of JPMorgan, Wells Fargo Securities, LLC, Barclays Bank plc, BofA Securities, Inc., Citibank, NA, Mizuho Bank, Ltd., MUFG Bank, Ltd., RBC Capital Markets and TD Securities (USA) LLC are joint lead arrangers and joint bookrunners. Wells Fargo Bank, NA is syndication agent. Bank of America, NA, Barclays, Citibank, Mizuho, MUFG, Royal Bank of Canada and Toronto-Dominion Bank, New York Branch are documentation agents.

The revolver matures on July 7, 2027, with two one-year extension options. The company has an option to increase commitments by up to $1 billion with lender consent.

The credit agreement contains a $250 million sublimit for swingline loans and a $2.2 billion sublimit for letters of credit.

Pricing is initially term SOFR plus 125 basis points with a commitment fee of 15 bps. The margin above term SOFR can range from 100 bps to 175 bps and the commitment fee from 10 bps to 25 bps, depending on Marathon’s credit ratings.

The credit agreement contains representations and warranties, affirmative and negative covenants and events, including a covenant that requires Marathon’s ratio of total net debt to total capitalization not to exceed 65% as of the last day of each fiscal quarter.

MPLX revolver

Wells Fargo Bank is the administrative agent, and each of JPMorgan, Wells Fargo Securities, Barclays, BofA, Citibank, Mizuho, MUFG, RBC and TD Securities are joint lead arrangers and joint bookrunners. JPMorgan is syndication agent. Bank of America, Barclays, Citibank, Mizuho, MUFG, Royal Bank of Canada and Toronto-Dominion Bank, New York Branch are documentation agents.

The revolver matures on July 7, 2027, with two one-year extension options. The company has an option to increase commitments by up to $1 billion with lender consent.

The credit agreement contains a $150 million sublimit for swingline loans and a $150 million sublimit for letters of credit.

Pricing is initially term SOFR plus 125 bps with a commitment fee of 15 bps. The margin above term SOFR can range from 100 bps to 175 bps and the commitment fee from 10 bps to 25 bps, depending on Marathon’s credit ratings.

Proceeds of each of the new revolvers may be used for working capital and general corporate purposes.

Marathon Petroleum is a crude oil refiner based in Findlay, Ohio.

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