By Cristal Cody
Tupelo, Miss., April 23 – Marathon Petroleum Corp. sold $2.5 billion of senior notes (Baa2/BBB/BBB) in two tranches on Thursday, according to a market source.
A $1.25 billion tranche of 4.5% three-year notes priced at a spread of Treasuries plus 425 basis points.
Marathon sold $1.25 billion of 4.7% five-year notes with a Treasuries plus 437.5 bps spread.
The company dropped an offering of 10-year notes from the final deal.
All three tranches were initially talked to price in the Treasuries plus 500 bps area.
Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Mizuho Securities USA Inc.
Proceeds will be used to repay debt under the company’s five-year revolving credit facility, to prefund the repayment of other debt with near term maturities and for general corporate purposes.
Marathon Petroleum is a crude oil refiner based in Findlay, Ohio.
| Issuer: | Marathon Petroleum Corp.
|
| Amount: | $2.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Mizuho Securities USA Inc.
|
| Trade date: | April 23
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 1, 2023
|
| Coupon: | 4.5%
|
| Spread: | Treasuries plus 425 bps
|
| Price talk: | Treasuries plus 437.5 bps area, plus or minus 12.5 bps; initial talk at Treasuries plus 500 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 1, 2025
|
| Coupon: | 4.7%
|
| Spread: | Treasuries plus 437.5 bps
|
| Price talk: | Treasuries plus 450 bps area, plus or minus 12.5 bps; initial talk at Treasuries plus 500 bps area
|
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