Marathon Petroleum enters $2 billion revolving facility with JPMorgan

By Jennifer Chiou

New York, Sept. 20 - Marathon Petroleum Corp. entered into on Sept. 14 a $2 billion five-year revolving credit agreement with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Bank of America Merrill Lynch, Morgan Stanley Senior Funding, Inc., RBS Securities Inc. and UBS Securities LLC acted as joint lead arrangers and joint bookrunners with Citigroup Global Markets Inc. as syndication agent.

Bank of America, NA, Morgan Stanley Senior Funding, Inc., Royal Bank of Scotland plc and USB AG, Stamford Branch were the documentation agents.

The unsecured revolving credit facility may be increased by up to an additional $500 million, subject to, among other things, lender consent.

The new revolver replaces the company's $2 billion four-year revolver dated March 11, 2011.

The loan will mature on Sept. 14, 2017.

The filing stated that there is an unused commitment fee ranging from 10 basis points to 35 bps per year depending on Marathon's credit ratings.

The revolver includes sub-facilities for swingline loans and letters of credit of up to an aggregate amount of $100 million and $2 billion, respectively.

Borrowings bear interest at adjusted Libor plus 100 bps to 200 bps, also based on credit ratings.

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

Affiliate revolver

Also on Sept. 14, company affiliates MPLX Operations LLC and MPLX LP entered into a five-year $500 million revolver with Citibank, NA as administrative agent.

Citigroup Global Markets, J.P. Morgan Securities, Bank of America Merrill, Morgan Stanley Senior Funding, RBS Securities and UBS Securities acted as joint lead arrangers and joint bookrunners.

This revolver may be increased by up to an additional $300 million.

The unused fee is 10 bps to35 bps per year based on MPLX's ratings.

Borrowings bear interest at adjusted Libor plus 100 bps to 200 bps.

Under the covenants, MPLX's ratio of total debt to EBITDA for the four prior fiscal quarters is not to exceed 5.0 to 1.0 as of the last day of each fiscal quarter.

Marathon is an oil company based in Houston.

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