Deal sells series A convertible preferred units at $32.50 to investors
By Devika Patel
Knoxville, Tenn., April 27 – MPLX LP said it plans a $1 billion private placement of 6.5% series A convertible preferred units.
The company will sell the preferred units at $32.50 apiece. The price per preferred unit is a 3.37% premium to the April 26 closing common unit price of $31.44.
The preferred units are generally convertible into MPLX common units on a one-for-one basis after three years, at the purchasers' option, and after four years at MPLX's option, subject to certain conditions.
Investors include funds managed by Stonepeak Infrastructure Partners, Magnetar Capital, Kayne Anderson Capital Advisors and the Energy & Minerals Group.
Settlement is expected in May.
Proceeds will be used for capital expenditures, debt repayment and general partnership purposes.
Based in Findlay, Ohio, MPLX is a master limited partnership formed in 2012 by Marathon Petroleum Corp. to own, operate, develop and acquire pipelines and other midstream assets related to the transportation and storage of crude oil, refined products and other hydrocarbon-based products.
| Issuer: | MPLX LP
|
| Issue: | Series A convertible preferred units
|
| Amount: | $1 billion
|
| Price: | $32.50
|
| Dividends: | 6.5%
|
| Warrants: | No
|
| Investor: | Stonepeak Infrastructure Partners, Magnetar Capital, Kayne Anderson Capital Advisors and the Energy & Minerals Group
|
| Pricing date: | April 27
|
| Common unit symbol: | NYSE: MPLX
|
| Common unit price: | $31.44 at close April 26
|
| Market capitalization: | $11.67 billion
|
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