Summary
Marathon Petroleum Corporation (MPC) has filed an 8-K report detailing significant events on December 4, 2015, primarily concerning its subsidiary MPLX LP. MPLX successfully completed its acquisition of MarkWest Energy Partners, L.P. (MarkWest) through a merger. This strategic acquisition involved MPLX issuing both MPLX common units and cash consideration to MarkWest unitholders. Concurrently, MPLX assumed MarkWest's substantial senior notes debt, amounting to approximately $4.1 billion. To facilitate its operations and integration, MPLX also entered into a new revolving loan agreement with its parent, MPC Investment LLC, for up to $500 million, secured by MPC's subsidiary. Additionally, MPC expanded its board of directors by one member.
Key Highlights
- 1MPLX LP completed the acquisition of MarkWest Energy Partners, L.P. via a merger, creating a larger integrated midstream entity.
- 2MarkWest common unitholders received a combination of MPLX common units and cash for their existing units.
- 3MPLX assumed approximately $4.1 billion in senior notes debt from MarkWest, increasing its leverage.
- 4MPLX secured a new $500 million revolving loan facility from MPC Investment LLC to support operations and integration.
- 5Amendments were made to the indentures governing MarkWest's senior notes to remove restrictive covenants, subject to the consummation of exchange offers.
- 6MPC increased its board size to twelve members and appointed Frank M. Semple as a new director.
- 7Full financial statements and pro forma information related to the acquisition will be filed at a later date.