Summary
MPLX LP (MPLX) filed an 8-K on November 11, 2015, to report a material amendment to its Agreement and Plan of Merger with MarkWest Energy Partners, L.P. (MWE). The primary change is an increase in the cash component of the merger consideration, raising it from $675 million to $1,075 million. This amendment alters the terms under which MWE common unitholders will receive consideration, now consisting of 1.090 MPLX common units and a pro-rata share of the increased $1,075 million cash amount, calculated based on outstanding MWE units. The merger remains subject to customary conditions, including MWE unitholder approval. Investors should note the increased cash outlay by MPLX, which could impact its liquidity and financial flexibility, while also providing a potentially more attractive overall package to MWE unitholders.
Key Highlights
- 1MPLX amended its merger agreement with MarkWest Energy Partners (MWE), increasing the cash portion of the merger consideration.
- 2The aggregate cash consideration has been raised from $675 million to $1,075 million.
- 3Each MWE common unit will now be converted into 1.090 MPLX common units and a pro-rata share of the increased cash amount.
- 4The merger is still contingent upon approval by MWE unitholders and other customary closing conditions.
- 5The filing includes the amended merger agreement (Exhibit 2.1) and a joint press release (Exhibit 99.1) detailing the amendment.
- 6The company included extensive risk factors and forward-looking statements related to the merger and general business operations.