Marathon Petroleum Corp. closed its $8.1 billion drop-down of refining logistics assets and fuels distribution services to its master limited partnership MPLX LP, as well as a buyout of its general partner economic interests and incentive distribution rights in MPLX.
The total drop-down consideration includes $4.1 billion in cash and $4 billion worth of around 114 million newly issued MPLX units. MPLX is funding the cash portion of the deal using its $4.1 billion, 364-day term loan facility, according to a Feb. 1 news release.
Separately, Marathon exchanged its general partner economic interests and incentive distribution rights in MPLX for 275 million MPLX units, with a value of $10.1 billion at the time of announcement. Marathon will retain control of MPLX through its ownership of non-economic general partner interest and, as a result of the buyout deal, will now own about 64% of MPLX's outstanding common units.
Marathon is a crude oil refining company that established MPLX for gathering, processing and transportation operations in the natural gas, NGLs and crude oil and refined petroleum products industries.
