Marathon Oil restates $2.5 billion revolver, extending it to 2019

By Angela McDaniels

Tacoma, Wash., June 2 - Marathon Oil Corp. entered into an amended and restated credit agreement on Wednesday that provides for a $2.5 billion revolving credit facility due May 28, 2019, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has a $1 billion accordion feature, a $100 million subfacility for swingline loans and a $500 million subfacility for letters of credit.

The company has two one-year extension options.

The interest rate is Libor plus a margin that ranges from 87.5 basis points to 150 bps depending on Marathon Oil's credit ratings. The commitment fee ranges from 8 bps to 22.5 bps.

Royal Bank of Scotland plc is the syndication agent. Citibank, NA, Morgan Stanley Senior Funding, Inc. and Bank of Nova Scotia are the documentation agents. JPMorgan Chase Bank, NA is the administrative agent.

The credit agreement includes a covenant that requires Marathon Oil's ratio of total debt to total capitalization not to exceed 65% as of the last day of each fiscal quarter.

The credit agreement amends and restates Marathon Oil's credit agreement dated as of April 5, 2012, which provided for a $2.5 billion revolver due April 5, 2017 with an interest rate of Libor plus 87.5 bps to 162.5 bps, a commitment fee of 10 bps to 25 bps, a $100 million subfacility for swingline loans and a $500 million subfacility for letters of credit.

Marathon is an oil and natural gas exploration and production company based in Houston.

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