By Aleesia Forni
New York, Dec. 7 – Marathon Petroleum Corp. sold a $1.5 billion three-part offering of senior notes (Baa2/BBB/BBB) in tranches due 2018, 2020 and 2045 on Monday, according to a market source.
A $600 million tranche of 2.7% three-year notes sold at 99.92 to yield 2.728%. The issue sold at Treasuries plus 150 basis points.
And a $650 million 3.4% tranche of five-year notes sold at 99.872 to yield 3.428%, or Treasuries plus 175 bps.
Both the three- and five-year tranches sold in line with guidance, which was unchanged from initial talk.
There was also $250 million 5.85% notes due 2045 sold at Treasuries plus 290 bps. Pricing was at 99.747 to yield 5.868%.
The notes sold in line with guidance, which had widened from initial talk in the 270 bps area over Treasuries.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co. and Mizuho Securities are the bookrunners.
Proceeds will be used to pay $750 million of 3.5% notes due 2016 and for general corporate purposes.
Marathon Petroleum is a crude oil refiner based in Findlay, Ohio.
| Issuer: | Marathon Petroleum Corp.
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Goldman Sachs & Co., Mizuho Securities
|
| Trade date: | Dec. 7
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $600 million
|
| Maturity: | Dec. 14, 2018
|
| Coupon: | 2.7%
|
| Price: | 99.92
|
| Yield: | 2.728%
|
| Spread: | Treasuries plus 150 bps
|
| Price guidance: | Treasuries plus 150 bps area
|
| Make-whole call: | Treasuries plus 25 bps
|
|
|
| Five-year notes
|
| Amount: | $650 million
|
| Maturity: | Dec. 15, 2020
|
| Coupon: | 3.4%
|
| Price: | 99.872
|
| Yield: | 3.428%
|
| Spread: | Treasuries plus 175 bps
|
| Price guidance: | Treasuries plus 175 bps area
|
| Make-whole call: | Treasuries plus 30 bps
|
|
|
| 30-year notes
|
| Amount: | $250 million
|
| Maturity: | Dec. 15, 2045
|
| Coupon: | 5.85%
|
| Price: | 99.747
|
| Yield: | 5.868%
|
| Spread: | Treasuries plus 290 bps
|
| Price guidance: | Treasuries plus 290 bps area, widened from Treasuries plus 270 bps area
|
| Make-whole call: | Treasuries plus 45 bps
|
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