8-KMaterial AgreementsFinancial EventsExhibits & Filings

Marathon Petroleum Corp 8-K Report, Material Agreement (Jul 25, 2019)

Filed July 25, 2019For Securities:MPC

Summary

Marathon Petroleum Corporation (MPC) filed an 8-K on July 25, 2019, to report on an amendment to its existing accounts receivable securitization facility. The key event is the Second Amendment to the Receivables Purchase Agreement, entered into on July 19, 2019. This amendment primarily extends the facility's term to July 16, 2021. This extension provides MPC with continued access to funding through its receivables, offering financial flexibility and stability. The securitization facility allows MPC to convert its trade receivables into cash, which is crucial for managing working capital and supporting ongoing operations and strategic initiatives. Investors should note that while the facility's term is extended, the core nature of the agreement remains focused on leveraging accounts receivable for liquidity.

Key Highlights

  • 1MPC amended its accounts receivable securitization facility through a Second Amendment to the Receivables Purchase Agreement on July 19, 2019.
  • 2The primary change in the amendment is the extension of the facility's term to July 16, 2021.
  • 3This amendment ensures continued access to funding through the securitization of MPC's trade receivables.
  • 4The facility allows MPC to convert accounts receivable into cash, supporting liquidity and working capital management.
  • 5The filing incorporates information by reference to previous 8-K filings from 2013 and 2016 for details on the original agreement and prior amendments.
  • 6The filing includes the Second Amendment to the Receivables Purchase Agreement as an exhibit.

Frequently Asked Questions

The accounts receivable securitization facility allows Marathon Petroleum Corporation (MPC) to convert its trade receivables into cash. This process essentially sells its accounts receivable to a special purpose entity, which then issues securities backed by these receivables, providing MPC with immediate liquidity.

Extending the facility's term to July 16, 2021, provides MPC with continued and predictable access to a source of funding for an extended period. This enhances financial flexibility, supports working capital needs, and can be used for operational expenses or strategic investments.

The filing primarily highlights the extension of the term. While there might be other minor modifications within the Second Amendment, the core purpose and structure of the securitization facility, which is to provide liquidity against receivables, remain the same. Investors seeking detailed changes would need to review the full agreement filed as an exhibit.

No, this is an amendment to an existing accounts receivable securitization facility. MPC has utilized this type of financing since at least December 2013, as indicated by references to previous filings.