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MPLX enters commitment letter for $4.1 billion 364-day term loan
By Angela McDaniels
Tacoma, Wash., Nov. 13 – MPLX LP entered into a commitment letter for a $4.1 billion 364-day term loan, according to a company news release.
The commitment letter is with Mizuho Bank, Ltd., Bank of America Merrill Lynch, MUFG, Barclays Bank plc, JPMorgan Chase Bank, NA and Wells Fargo Bank, NA.
The company entered into the commitment letter in connection with its dropdown agreement with Marathon Petroleum Corp. Under the dropdown agreement, Marathon Petroleum will drop down its refining logistics assets and fuels distribution services to MPLX for total consideration of about $8.1 billion, or $4.1 billion of cash and about $4 billion of MPLX equity.
The term loan will be funded once the dropdown transaction closes, which is expected to happen Feb. 1.
The proceeds from the term loan will be used to fund the cash portion of the dropdown consideration.
MPLX is a master limited partnership formed in 2012 by Marathon Petroleum to own, operate, develop and acquire midstream energy infrastructure assets. Marathon Petroleum is an oil refiner. Both are based in Findlay, Ohio.
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