MPLX enters into $1 billion revolver, $250 million term loan facility

By Tali Rackner

Norfolk, Va., Nov. 26 – MPLX LP entered into a $1 billion five-year revolving credit facility and a $250 million term loan facility via agent Citibank on Nov. 20, according to an 8-K filing with the Securities and Exchange Commission.

The revolver includes letter-of-credit issuing capacity of up to $250 million and swingline loan capacity of up to $100 million. It may be increased by up to an additional $500 million.

The revolver matures on Nov. 20, 2019 and may be extended for up to two additional one-year periods.

The new facility replaces a previous revolving credit agreement.

The term loan facility was drawn in full on Nov. 20 and matures on Nov. 20, 2019. The maturity date may be extended for up to two additional one-year periods.

Borrowings under the credit agreement initially bear interest at Libor plus 125 basis points and ranges from 100 bps to 175 bps, based on MPLX’s ratings. The commitment fee is initially 17.5 bps and ranges from 10 bps to 27.5 bps.

The agreement contains certain provisions, including a covenant that requires the company’s maximum ratio of consolidated total debt to consolidated EBITDA for the four prior fiscal quarters of 5 to 1 as of the last day of each fiscal quarter (or 5.5 to 1 during an acquisition period).

Citigroup Global Markets Inc., Wells Fargo Securities, LLC, Barclays Bank plc, J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc. and RBS Securities Inc. are joint lead arrangers and bookrunners; Wells Fargo Bank, NA is the syndication agent; and Bank of America, NA, Barclays, JPMorgan Chase Bank, NA and Royal Bank of Scotland plc are documentation agents.

The Findlay, Ohio, limited partnership was formed by Marathon Petroleum Corp. to own, operate, develop and acquire crude oil, refined product and other hydrocarbon-based product pipelines and midstream assets.

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