Marathon Oil Corp. closed three separate transactions, including its early redemption of $600 million of its 2.7% senior unsecured notes due 2020, according to an Oct. 3 news release.
The oil company also closed Oct. 1 its remarketing of sub-series A bonds, which are part of the $1 billion St. John the Baptist, La., series 2017 revenue refunding bonds issued Dec. 18, 2017. The sub-series A bonds would accrue interest at a 2.00% rate for the A-1 bonds, 2.10% for the A-2 bonds and 2.20% for the A-3 bonds. All bonds have a par value of $200 million and a maturity date of June 1, 2037. Marathon Oil would continue to own the remaining $400 million of the 2017 bonds.
Marathon Oil on Sept. 24 also amended its credit agreement to reduce its size from $3.39 billion to $3.0 billion and to extend the maturity date to May 28, 2023.
Marathon Oil's next debt maturity would be its $1 billion 2.8% senior unsecured notes due 2022. With the completion of the three transactions, Marathon Oil has generated annualized cash cost savings of approximately $6 million.
