Published on 9/3/2014 in the Prospect News Investment Grade Daily.
New Issue: Marathon Petroleum details $1.95 billion three-part note sale
By Aleesia Forni
Virginia Beach, Sept. 3 – Marathon Petroleum Corp. detailed its $1.95 billion issue of senior notes priced in three tranches, according to a FWP filed with the Securities and Exchange Commission.
The sale included $750 million of 3.625% notes due 2024 priced at 99.641 to yield 3.668%, or Treasuries plus 125 basis points.
MUFG, Citigroup Global Markets Inc., RBS Securities Inc., Barclays, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC were the bookrunners.
There was also $800 million of 4.75% notes due 2044 sold at 98.862 to yield 4.822%, or Treasuries plus 165 bps.
RBS Securities, MUFG, Morgan Stanley, BofA Merrill Lynch, Barclays, Citigroup and J.P. Morgan Securities LLC were the bookrunners.
A $400 million tranche of 5% notes due 2054 priced at 98.77 to yield 5.072%, or Treasuries plus 190 bps.
MUFG, RBS Securities, Citigroup, Morgan Stanley, Barclays, JPMorgan and BofA Merrill Lynch were the bookrunners.
Proceeds will be used to fund the company’s pending acquisition of Hess Retail Holdings LLC through its wholly owned subsidiary Speedway LLC.
Marathon Petroleum is a crude oil refiner based in Findlay, Ohio.
| Issuer: | Marathon Petroleum Corp.
|
| Issue: | Senior notes
|
| Amount: | $1.95 billion
|
| Trade date: | Sept. 2
|
| Settlement date: | Sept. 5
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Sept. 15, 2024
|
| Bookrunners: | MUFG, Citigroup Global Markets Inc., RBS Securities Inc., Barclays, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities, LLC
|
| Co-managers: | DNB Markets, Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, PNC Capital Markets LLC, Williams Capital Group, LP
|
| Coupon: | 3.625%
|
| Price: | 99.641
|
| Yield: | 3.668%
|
| Spread: | Treasuries plus 125 bps
|
| Make-whole call: | Treasuries plus 20 bps prior to June 1, 2024, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $800 million
|
| Maturity: | Sept. 15, 2044
|
| Bookrunners: | RBS Securities, MUFG, Morgan Stanley, BofA Merrill Lynch, Barclays, Citigroup, JPMorgan
|
| Co-managers: | Deutsche Bank Securities Inc., Fifth Third Securities, Inc., U.S. Bancorp Investments, Inc., UBS Securities LLC, Wells Fargo Securities
|
| Coupon: | 4.75%
|
| Price: | 98.862
|
| Yield: | 4.822%
|
| Spread: | Treasuries plus 165 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to March 15, 2044, then callable at par
|
|
|
| 40-year bonds
|
| Amount: | $400 million
|
| Maturity: | Sept. 15, 2054
|
| Bookrunners: | MUFG, RBS Securities, Citigroup, Morgan Stanley, Barclays, JPMorgan, BofA Merrill Lynch
|
| Co-managers: | Deutsche Bank Securities, Fifth Third Securities, U.S. Bancorp Investments, UBS Securities, Wells Fargo Securities
|
| Coupon: | 5%
|
| Price: | 98.77
|
| Yield: | 5.072%
|
| Spread: | Treasuries plus 190 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to March 15, 2054, then callable at par
|
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