Published on 11/7/2018 in the Prospect News Investment Grade Daily.
New Issue: MPLX prices $2.25 billion of senior notes in 10- and 30-year tranches
By Cristal Cody
Tupelo, Miss., Nov. 7 – MPLX LP priced a $2.25 billion two-tranche offering of fixed-rate senior notes (Baa3/BBB/BBB-) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $750 million of 4.8% 10-year notes at 99.432 to yield 4.872%, or a spread of Treasuries plus 165 basis points.
A $1.5 billion tranche of 5.5% 30-year notes was sold at 98.031 to yield 5.637%. The notes priced with a spread of Treasuries plus 220 bps.
J.P. Morgan Securities LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., BofA Merrill Lynch, Mizuho Securities USA LLC and MUFG were the bookrunners.
Proceeds will be used to redeem the company’s 5.5% senior notes due Feb. 15, 2023 at 101.833 plus unpaid interest, 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: | $2.25 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., BofA Merrill Lynch, Mizuho Securities USA LLC and MUFG
|
| Senior co-managers: | BNP Paribas Securities Corp., PNC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) 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: | Nov. 7
|
| Settlement date: | Nov. 15
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 15, 2029
|
| Coupon: | 4.8%
|
| Price: | 99.432
|
| Yield: | 4.872%
|
| Spread: | Treasuries plus 165 bps
|
| Call feature: | Make-whole call at Treasuries plus 25 bps before Nov. 15, 2028; par thereafter
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Feb. 15, 2049
|
| Coupon: | 5.5%
|
| Price: | 98.031
|
| Yield: | 5.637%
|
| Spread: | Treasuries plus 220 bps
|
| Call feature: | Make-whole call at Treasuries plus 35 bps before Aug. 15, 2048; par thereafter
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
