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MPLX prices $5.5B note offering to repay $4.1B term loan

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MPLX prices $5.5B note offering to repay $4.1B term loan

MPLX LP priced its underwritten public offering of a $5.5 billion suite of unsecured senior notes issued for the most part to repay the principal and accrued interest on a $4.1 billion term loan the partnership took out Feb. 1, according to a Feb. 5 news release.

The offering consists of five series of senior notes: $500 million of 3.375% senior notes due 2023, $1.25 billion of 4.000% senior notes due 2028, $1.75 billion of 4.500% senior notes due 2038, $1.5 billion of 4.700% senior notes due 2048 and $500 million of 4.900% senior notes due 2058.

The 2023 notes were priced to the public at 99.931% of par, the 2028 notes at 99.551%, the 2038 notes at 98.811%, the 2048 notes at 99.348% and the 2058 notes at 99.289%.

Remaining net proceeds from the offering, expected to close Feb. 8, will be used to repay revolver debt and an intercompany loan agreement with Marathon Petroleum Corp. and for general partnership purposes, which may include acquisition, CapEx and distribution payments, the company said.

Merrill Lynch Pierce Fenner & Smith Inc., Barclays Capital Inc. and Mizuho Securities USA LLC are acting joint global coordinators and book-running managers for the offering, while J.P. Morgan Securities LLC, MUFG Securities Americas Inc., Wells Fargo Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets LLC, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, 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. are acting joint book-running managers.

MPLX is a master limited partnership formed by Marathon Petroleum Corp. to own, operate, develop and acquire energy infrastructure.