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Marathon Oil prices tender offer for 2.8% notes, gives early tally
By Taylor Fox
New York, Sept. 30 – Marathon Oil Corp. set the consideration payable for its cash tender offer for up to $500 million of its outstanding $1 billion 2.8% senior notes due 2022 (Cusip: 565849AK2), according to a Wednesday news release.
The $1,051.22 total consideration for each $1,000 of notes validly tendered and accepted was determined at 10 a.m. ET Sept. 30 using a fixed spread of 20 basis points plus the 0.131% reference yield based on the bid-side price of 0.125% U.S. Treasury due Aug. 31, 2022.
The total consideration includes an early tender premium of $50 per $1,000 of notes tendered by 5 p.m. ET Sept. 29, the early tender time.
As announced earlier in the day on Wednesday, $757,215,000 of the notes had been tendered and the maximum tender amount had been subscribed as of the early tender time.
All of the notes validly tendered and not validly withdrawn prior to or at the early tender time will be subject to proration. Marathon expects to accept for purchase $500 million of notes in the offer using a proration rate of 66.08%.
Payment for the early tendered notes, including accrued interest, will be made on the early settlement date, Oct. 1.
The offer will expire at 11:59 p.m. ET Oct. 14.
However, Marathon does not anticipate accepting for purchase any notes validly tendered after the early tender time.
D.F. King & Co., Inc. (212 269-5550, 866 416-0576; mro@dfking.com) is the tender agent and information agent.
J.P. Morgan and Securities LLC (866 834-4666, 212 834-3424) and TD Securities (USA) LLC (855 495-9846, 212 827-7381) are the lead dealer managers.
Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are co-dealer managers.
The energy company is based in Houston.
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