FINDLAY, Ohio, Aug. 26, 2014 - Marathon Petroleum Corporation (NYSE: MPC)
announced today that it has entered into a five-year senior unsecured term loan
agreement with a syndicate of lenders providing commitments for $700 million in
term loan borrowings. The term loan proceeds will be used to fund a portion of
the purchase consideration for Speedway's acquisition of Hess Retail Holdings
LLC, expected to close later this year. Borrowings under the term loan agreement
are subject to customary conditions and would have to be repaid if the
acquisition is not completed within 10 business days following the funding date.
The term loan was substantially oversubscribed from a group of the lenders who
are also participants in MPC's primary revolving credit facility. The borrowings
will mature five years following the funding date and may be prepaid at any time
without premium or penalty. Interest on the borrowings will accrue at a rate
determined by a grid-based pricing matrix that is dependent upon the company's
credit ratings.
A copy of the term loan agreement will be made available as an exhibit to a
current report on Form 8-K to be filed by MPC with the Securities and Exchange
Commission on or prior to Sept. 2, 2014.
RBS Securities Inc., Bank of Tokyo-MitsubishiUFJ Ltd., Barclays Bank PLC,
Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. served as
joint lead arrangers and joint bookrunners under the term loan agreement.
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About Marathon Petroleum Corporation
MPC is the nation's fourth-largest refiner, with a crude oil refining capacity
of approximately 1.7 million barrels per calendar day in its seven-refinery
system. Marathon brand gasoline is sold through approximately 5,300
independently owned retail outlets across 19 states. In addition, Speedway LLC,
an MPC subsidiary, owns and operates the nation's fourth-largest convenience
store chain, with approximately 1,490 convenience stores in nine states. MPC
also owns, leases or has ownership interests in approximately 8,300 miles of
pipeline. Through subsidiaries, MPC owns the general partner of MPLX LP, a
midstream master limited partnership. MPC's fully integrated system provides
operational flexibility to move crude oil, feedstocks and petroleum-related
products efficiently through the company's distribution network in the Midwest,
Southeast and Gulf Coast regions. For additional information about the company,
please visit our website at http://www.marathonpetroleum.com.
Investor Relations Contact:
Geri Ewing (419) 421-2071
Media Contact:
Angelia Graves (419) 421-2703
This press release contains forward-looking statements within the meaning of
federal securities laws. These forward-looking statements are based on
management's current expectations and relate to, among other things, plans
regarding the use of proceeds from the term loan agreement and the completion by
MPC subsidiary, Speedway LLC, of the acquisition of Hess Retail Holdings LLC.
Such forward-looking statements are not guarantees of future performance and are
subject to risks, uncertainties and other factors, some of which are beyond
MPC's control and are difficult to predict. Any forward-looking projections or
statements should be considered in conjunction with the cautionary statements
and factors set forth under the heading "Risk Factors" in MPC's Annual Report on
Form 10-K for the year ended Dec. 31, 2013, and other reports filed with the
Securities and Exchange Commission (SEC). In addition, unpredictable or unknown
factors not discussed here or in MPC's SEC filings could also have material
adverse effects on forward-looking statements. Copies of MPC's Form 10-K are
available on the SEC website, MPC's website at http://ir.marathonpetroleum.com
or by contacting MPC's Investor Relations office.
MPCTermLoanAgreement:
http://hugin.info/147922/R/1851330/646632.pdf
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Source: Marathon Petroleum Corporation via GlobeNewswire
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