Marathon gets $700 million five-year term loan for Hess acquisition

By Angela McDaniels

Tacoma, Wash., Aug. 26 – Marathon Petroleum Corp. entered into a $700 million five-year senior term loan, according to a company news release.

Borrowings may be prepaid at any time without premium or penalty.

RBS Securities Inc., MUFG, Barclays Bank plc, Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. acted as joint lead arrangers and joint bookrunners.

The company said the term loan was “substantially” oversubscribed from a group of the lenders who are also participants in its primary revolving credit facility.

The term loan proceeds will be used to fund a portion of the purchase price for subsidiary Speedway LLC’s acquisition of Hess Retail Holdings LLC, which is expected to close later this year. If the acquisition is not completed within 10 business days following the funding date, the borrowings would have to be repaid.

Marathon Petroleum is a crude oil refiner based in Findlay, Ohio. Speedway owns and operates a chain of convenience stores.

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