Summary
This 8-K filing by MPLX LP (MPLX) on December 9, 2015, primarily announces the completion of its acquisition of MarkWest Energy Partners, L.P. (MarkWest). This strategic combination is a significant development for MPLX, expanding its footprint in the midstream sector. The transaction was structured as a merger where MarkWest common unitholders received a combination of MPLX common units and cash, with MarkWest Class B units converting into MPLX Class B units subject to future conversion. In conjunction with the acquisition, MPLX has also entered into a new $500 million revolving loan facility with MPC Investment LLC, a subsidiary of Marathon Petroleum Corporation (MPC), its general partner. This provides additional financial flexibility. The filing also details the assumption of $4.1 billion in MarkWest senior notes and outlines recent amendments to the indentures governing these notes to remove restrictive covenants, alongside ongoing exchange offers. Significant changes in MPLX's executive and director appointments are also noted to integrate the MarkWest operations.
Key Highlights
- 1Completion of the acquisition of MarkWest Energy Partners, L.P. (MWE) by MPLX LP.
- 2MarkWest common unitholders received 1.09 MPLX common units and $6.20 in cash per MarkWest common unit.
- 3MPLX entered into a $500 million revolving loan agreement with MPC Investment LLC, providing financial flexibility.
- 4MPLX assumed approximately $4.1 billion in MarkWest senior notes.
- 5Amendments to MarkWest senior note indentures were executed to remove restrictive covenants, with exchange offers ongoing.
- 6MPLX's credit agreement was amended to increase revolving credit capacity to $2.0 billion.
- 7Key executive appointments and board changes at MPLX GP to integrate MarkWest operations, including the CFO and COO roles.