MPLX LPis offering a private placement of $1 billion of 6.5% series A convertible preferredunits at $32.50 per unit.

MPLX will have about 30.8 million preferred units outstandingupon the closing of the private placement, according to the partnership's April27 news release. The transaction is expected to close in May.

The preferred units are generally convertible into MPLX commonunits on a 1-for-1 basis after three years at the purchasers' option, and afterfour years at MPLX's option, subject to certain conditions.

MPLX said it expects to use the proceeds for capital expenditures,repayment of debt and general partnership purposes.

"This private placement provides an attractive funding sourcefor the partnership and combined with some opportunistic at-the-market issuancesin the first quarter, provides for the partnership's anticipated funding needs forthe remainder of 2016 and into 2017," MPLX Chairman and CEO Gary Heminger saidin a statement.

Primary investors in the private placement include funds managedby Stonepeak Infrastructure Partners, Magnetar Capital, Kayne Anderson Capital Advisorsand the Energy & Minerals Group.