MPLX will use proceeds to repay loan with MPC Investment

By Mary-Katherine Stinson

Lexington, Ky., March 10 – MPLX LP will use the proceeds of its single-tranche offering of senior notes to repay outstanding borrowings under an intercompany agreement with MPC Investment LLC and the MPLX credit agreement, according to according to a 424B5 filing with the Securities and Exchange Commission Thursday.

Any remaining proceeds will be used for general partnership purposes.

As of March 7, there was approximately $1.47 billion of outstanding borrowings under the MPC intercompany loan agreement bearing an interest rate of 1.56% per annum and approximately $575 million of outstanding borrowings under the MPLX credit agreement bearing interest at a weighted average rate of 1.49% per annum.

Both agreements mature July 31, 2024.

The MPC intercompany loan agreement provides that MPC may demand repayment of any outstanding borrowings at any time prior to the maturity date.

MPLX is a Findlay, Ohio-based owner, operator and developer of crude oil pipeline and midstream assets in the United States.

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