What is the total amount of credit available to MPLX under the new Credit Agreement?

The new Credit Agreement provides for a $1 billion revolving credit facility and a $250 million term loan facility, totaling $1.25 billion in immediate available credit. Additionally, the revolving credit facility has the potential to be increased by up to $500 million, subject to lender consent.

When do the revolving credit and term loan facilities mature?

Both the revolving credit facility and the term loan facility have an initial maturity date of November 20, 2019. Both facilities also have provisions for extension for up to two additional one-year periods, subject to lender consent.

What impact does this new credit facility have on MPLX's previous credit agreements?

Upon entering into this new Credit Agreement, MPLX terminated its previously existing $500 million five-year revolving credit agreement dated September 14, 2012. The $265 million outstanding balance on the old facility was fully repaid using borrowings from the new Credit Agreement.

Are there any financial restrictions or covenants associated with this new credit facility?

Yes, the Credit Agreement includes customary covenants. Notably, it requires MPLX's ratio of Consolidated Total Debt to Consolidated EBITDA not to exceed 5.0 to 1.0 as of the last day of each fiscal quarter (or 5.5 to 1.0 during an Acquisition Period). Other covenants restrict debt incurrence, liens, and affiliate transactions.

MPLX/MPLXP 8-K: Material Agreements & Financial Events

Summary

MPLX LP (MPLX) announced on November 26, 2014, through an 8-K filing, the execution of a new, substantial Credit Agreement dated November 20, 2014. This agreement replaces a previous credit facility and provides MPLX with a five-year, $1 billion revolving credit facility and a $250 million term loan facility, significantly enhancing its borrowing capacity and financial flexibility. The new facility includes provisions for increasing the revolving credit by an additional $500 million, subject to lender consent, and has maturity dates extending to November 20, 2019, with potential extensions. This new credit facility demonstrates MPLX's strategy to secure robust financing for its operations and growth initiatives. The structure of the interest rates and fees is tied to MPLX's leverage ratios and credit ratings, aligning borrowing costs with financial performance. The agreement also includes standard covenants, such as a maximum Consolidated Total Debt to Consolidated EBITDA ratio of 5.0x (or 5.5x during an Acquisition Period), which provides a framework for responsible financial management. The termination of the prior $500 million credit facility, with its outstanding balance of $265 million fully repaid by borrowings under the new agreement, signifies a transition to a more substantial and potentially more favorable financing structure for the company.

Key Highlights

1MPLX LP entered into a new Credit Agreement on November 20, 2014.
2The new agreement provides a $1 billion revolving credit facility and a $250 million term loan facility.
3The revolving credit facility has a five-year term and can be increased by up to $500 million.
4The term loan facility was fully drawn upon execution and also matures in five years.
5The new credit facility replaces a previous $500 million revolving credit agreement.
6Interest rates and commitment fees are variable, based on MPLX's leverage ratios and credit ratings.
7The agreement includes covenants, such as a maximum debt-to-EBITDA ratio of 5.0x.

MPLX LP 8-K Report, Material Agreement (Nov 26, 2014)

Summary

Key Highlights

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