New Issue: MPLX prices $5.5 billion of fixed-rate senior notes in five tranches

By Cristal Cody

Tupelo, Miss., Feb. 5 – MPLX LP priced a $5.5 billion five-tranche offering of fixed-rate senior notes (Baa3/BBB/BBB-) on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.

The company sold $500 million of 3.375% five-year notes at 99.931 to yield 3.389%, or a spread of Treasuries plus 90 basis points.

MPLX priced $1.25 billion of 4% 10-year notes at 99.551 to yield 4.054%. The notes priced with a spread of Treasuries plus 130 bps.

MPLX sold $1.75 billion of 4.5% 20-year notes at 98.811 to yield 4.59%, or a Treasuries plus 155 bps spread.

The $1.5 billion tranche of 4.7% 30-year notes was placed at 99.348 to yield 4.74%, or a spread of Treasuries plus 170 bps.

MPLX also sold $500 million of 4.9% 40-year notes at 99.289 to yield 4.94%, or a Treasuries plus 190 bps spread.

The five- and 40-year tranches priced better than talk, while the remaining tranches priced on the tight side of guidance.

BofA Merrill Lynch, Barclays and Mizuho Securities USA Inc. were the joint global coordinators and bookrunners.

J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets, LLC, BNP Paribas Securities Corp., Goldman Sachs & Co., PNC Capital Markets LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, UBS Securities LLC and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to repay the principal and interest on the company’s $4.1 billion term loan, to repay borrowings under its revolving credit facility and the MPC intercompany loan agreement and for general partnership purposes.

MPLX is a Findlay, Ohio-based owner, operator and developer of crude oil pipeline and midstream assets in the United States.

Issuer:	MPLX LP
Amount:	$5.5 billion
Description:	Senior notes
Global coordinators:	BofA Merrill Lynch, Barclays and Mizuho Securities USA Inc.
Bookrunners:	J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets, LLC, BNP Paribas Securities Corp., Goldman Sachs & Co., PNC Capital Markets LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC, UBS Securities LLC and U.S. Bancorp Investments Inc.
Co-managers:	BB&T Capital Markets, Comerica Securities, Inc., Fifth Third Securities, Inc., Huntington Investment Co., BNY Mellon Capital Markets, LLC, Loop Capital Markets LLC and Williams Capital Group, LP
Trade date:	Feb. 5
Settlement date:	Feb. 8
Ratings:	Moody’s: Baa3
	S&P: BBB
	Fitch: BBB-
Distribution:	SEC registered
Five-year notes
Amount:	$500 million
Maturity:	March 15, 2023
Coupon:	3.375%
Price:	99.931
Yield:	3.389%
Spread:	Treasuries plus 90 bps
Call feature:	Make-whole call at Treasuries plus 15 bps before Feb. 15, 2023; par thereafter
Price guidance:	Treasuries plus 100 bps area
10-year notes
Amount:	$1.25 billion
Maturity:	March 15, 2028
Coupon:	4%
Price:	99.551
Yield:	4.054%
Spread:	Treasuries plus 130 bps
Call feature:	Make-whole call at Treasuries plus 20 bps before Dec. 15, 2027; par thereafter
Price guidance:	Treasuries plus 135 bps area
20-year notes
Amount:	$1.75 billion
Maturity:	April 15, 2038
Coupon:	4.5%
Price:	98.811
Yield:	4.59%
Spread:	Treasuries plus 155 bps
Call features:	Make-whole call at Treasuries plus 25 bps before Oct. 15, 2037; par thereafter
Price guidance:	Treasuries plus 160 bps area
30-year notes
Amount:	$1.5 billion
Maturity:	April 15, 2048
Coupon:	4.7%
Price:	99.348
Yield:	4.74%
Spread:	Treasuries plus 170 bps
Call feature:	Make-whole call at Treasuries plus 25 bps before Oct. 15, 2047; par thereafter
Price guidance:	Treasuries plus 175 bps area
40-year notes
Amount:	$500 million
Maturity:	April 15, 2058
Coupon:	4.9%
Price:	99.289
Yield:	4.94%
Spread:	Treasuries plus 190 bps
Call feature:	Make-whole call at Treasuries plus 30 bps before Oct. 15, 2057; par thereafter
Price guidance:	Treasuries plus 200 bps area

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