What is the main purpose of the amendment to MPLX's Credit Agreement?

The primary purpose of the amendment is to increase MPLX's revolving credit capacity by $1.0 billion, bringing the total to $2.0 billion, and to extend the facility's term by five years. This is intended to provide enhanced financial flexibility, particularly in light of the pending acquisition of MarkWest Energy Partners, L.P.

When do these amendments to the Credit Agreement become effective?

The amendments are subject to certain conditions precedent and will only become effective upon the satisfaction or waiver of these conditions, most notably the consummation of the transactions contemplated by the merger agreement with MarkWest Energy Partners, L.P.

Has there been a change in the banks involved in the Credit Agreement?

Yes, Wells Fargo Bank, National Association has replaced Citibank, N.A. as the administrative agent under the Credit Agreement. The filing also lists several other institutions as joint lead arrangers, joint bookrunners, syndication agent, and documentation agents.

What is the significance of the MarkWest Energy Partners acquisition in relation to this filing?

The amendments to the Credit Agreement, including the increase in credit capacity and extension of the term, are directly tied to the closing of the pending acquisition of MarkWest Energy Partners, L.P. This suggests MPLX is bolstering its financial resources to facilitate and support this major strategic transaction.

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

Summary

MPLX LP (MPLX) filed an 8-K on November 2, 2015, primarily detailing an amendment to its Credit Agreement. The key change involves a significant increase in revolving credit capacity, raising it by $1.0 billion to a total of $2.0 billion. This amendment also extends the term of the revolving credit facility by five years, contingent upon the successful closing of MPLX's pending acquisition of MarkWest Energy Partners, L.P. (MWE). This expansion of credit facilities is strategically timed with the significant MarkWest acquisition, suggesting MPLX is securing robust financial resources to support integration and potential future growth initiatives stemming from the merger. Investors should note that the amendments are conditional on the MarkWest merger's completion, highlighting the interconnectedness of these two significant corporate events. The filing also notes a change in the administrative agent for the credit facility from Citibank, N.A. to Wells Fargo Bank, National Association.

Key Highlights

1MPLX LP amended its Credit Agreement, increasing revolving credit capacity by $1.0 billion to a total of $2.0 billion.
2The term of the revolving credit facility has been extended by five years.
3The amendments are contingent upon the consummation of the pending acquisition of MarkWest Energy Partners, L.P.
4Wells Fargo Bank, National Association has replaced Citibank, N.A. as the administrative agent for the Credit Agreement.
5The filing also provides extensive forward-looking statements and risk factors related to the MarkWest acquisition and general market conditions.
6Information regarding the MarkWest acquisition, including a joint proxy statement and prospectus, has been filed with the SEC and is available to investors.

MPLX LP 8-K Report, Material Agreement (Nov 2, 2015)

Summary

Key Highlights

Frequently Asked Questions