MPLX LP Announces $1 Billion Private Placement of 6.5% Series A Convertible Preferred Units
April 27 2016 - 4:18PM
FINDLAY, Ohio, April 27, 2016 - MPLX LP (NYSE:
MPLX) today announced that it has entered into an agreement for the
private placement of $1 billion of newly authorized 6.5% Series A
Convertible Preferred Units (the "Preferred Units") at a price of
$32.50 per unit with approximately 30.8 million Preferred Units to
be outstanding at the closing of the private placement. The
Preferred Units are generally convertible into MPLX common units on
a one for one basis after three years, at the purchasers' option,
and after four years at MPLX's option, subject to certain
conditions. The transaction is expected to close in May
2016.
The net proceeds, after deducting offering and transaction
expenses, are expected to be approximately $984 million. MPLX
expects to use the proceeds for capital expenditures, repayment of
debt, and general partnership purposes. Primary investors include
funds managed by Stonepeak Infrastructure Partners, Magnetar
Capital, Kayne Anderson Capital Advisors and The Energy &
Minerals Group.
"The partnership elected to take advantage of very strong investor
interest in convertible preferred securities by agreeing to the
private placement of $1 billion of those securities with a select
group of investors," MPLX Chairman and Chief Executive Officer Gary
R. Heminger said. "This private placement provides an attractive
funding source for the partnership and combined with some
opportunistic at-the-market issuances in the first quarter,
provides for the partnership's anticipated funding needs for the
remainder of 2016 and into 2017, enabling MPLX to continue its
execution of attractive organic growth projects that will
contribute to distributable cash flow and long-term value for our
unitholders."
On April 28, MPLX will provide an update on its 2016 first-quarter
results through an earnings release, to be followed by a conference
call scheduled for 11 a.m. EDT that day. Interested parties may
listen to the conference call by dialing 1-800-446-1671
(confirmation #42124992) or by visiting MPLX's website at
http://www.mplx.com and clicking on the "2016 First-Quarter
Financial Results" link in the "News & Headlines"
section.
The securities offered in the private placement have not been
registered under the Securities Act of 1933, as amended (the
"Securities Act"), or any state securities laws and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements of the
Securities Act and applicable state laws.
This press release is neither an offer to sell nor a solicitation
of an offer to purchase the securities described herein.
###
About MPLX LP
MPLX is a diversified, growth-oriented master
limited partnership formed in 2012 by Marathon Petroleum
Corporation to own, operate, develop and acquire midstream energy
infrastructure assets. We are engaged in the gathering, processing
and transportation of natural gas; the gathering, transportation,
fractionation, storage and marketing of NGLs; and the
transportation and storage of crude oil and refined petroleum
products. Headquartered in Findlay, Ohio, MPLX's assets consist of
a network of common carrier crude oil and products pipeline assets
located in the Midwest and Gulf Coast regions of the United States,
an inland marine business, a butane storage cavern located in West
Virginia with approximately 1 million barrels of storage capacity,
crude oil and product storage facilities (tank farms) with
approximately 4.5 million barrels of available storage capacity, a
barge dock facility with approximately 78,000 barrels per day of
crude oil and product throughput capacity and gathering and
processing assets that include more than 5,000 miles of gas
gathering and NGL pipelines, 53 gas processing plants, 13 NGL
fractionation facilities and one condensate stabilization
facility.
Investor Relations Contacts:
Lisa D. Wilson (419) 421-2071
Kevin Hawkins (866) 858-0482
Media Contact:
Chuck Rice
(419) 421-2521
Forward-looking statements
This press release contains
forward-looking statements within the meaning of federal securities
laws regarding MPLX LP ("MPLX") and Marathon Petroleum Corporation
("MPC").These forward-looking statements relate to, among other
things, expectations, estimates and projections concerning the
business and operations of MPLX and MPC. You can identify
forward-looking statements by words such as "anticipate,"
"believe," "design," "estimate," "expect," "forecast," "goal,"
"guidance," "imply," "intend," "objective," "opportunity,"
"outlook," "plan," "position," "pursue," "prospective," "predict,"
"project," "potential," "seek," "strategy," "target," "could,"
"may," "should," "would," "will" or other similar expressions that
convey the uncertainty of future events or outcomes. Such
forward-looking statements are not guarantees of future performance
and are subject to risks, uncertainties and other factors, some of
which are beyond the companies' control and are difficult to
predict. Factors that could cause MPLX's actual results to differ
materially from those implied in the forward-looking statements
include: negative capital market conditions, including a
persistence or increase of the current yield on common units, which
is higher than historical yields, adversely affecting MPLX's
ability to meet its distribution growth guidance; risk that the
synergies from the acquisition of MarkWest Energy Partners, L.P.
("MarkWest") by MPLX may not be fully realized or may take longer
to realize than expected; disruption from the MPLX/MarkWest
transaction making it more difficult to maintain relationships with
customers, employees or suppliers; risks relating to any unforeseen
liabilities of MarkWest; the adequacy of MPLX's capital resources
and liquidity, including, but not limited to, availability of
sufficient cash flow to pay distributions, and the ability to
successfully execute its business plans and growth strategy; the
timing and extent of changes in commodity prices and demand for
crude oil, refined products, feedstocks or other hydrocarbon-based
products; continued/further volatility in and/or degradation of
market and industry conditions; completion of midstream
infrastructure by competitors; disruptions due to equipment
interruption or failure, including electrical shortages and power
grid failures; the suspension, reduction or termination of MPC's
obligations under MPLX's commercial agreements; modifications to
earnings and distribution growth objectives; the level of support
from MPC, including drop-downs, alternative financing arrangements,
taking equity units, and other methods of sponsor support, as a
result of the capital allocation needs of the enterprise as a whole
and its ability to provide support on commercially reasonable
terms; federal and state environmental, economic, health and
safety, energy and other policies and regulations; changes to
MPLX's capital budget; other risk factors inherent to MPLX's
industry; and the factors set forth under the heading "Risk
Factors" in MPLX's Annual Report on Form 10-K for the year ended
Dec. 31, 2015, filed with the Securities and Exchange Commission
(SEC). Factors that could cause MPC's actual results to differ
materially from those implied in the forward-looking statements
include: risks described above relating to MPLX and the
MPLX/MarkWest transaction; changes to the expected construction
costs and timing of pipeline projects; continued/further volatility
in and/or degradation of market and industry conditions; the
availability and pricing of crude oil and other feedstocks; slower
growth in domestic and Canadian crude supply; the effects of the
lifting of the U.S. crude oil export ban; completion of pipeline
capacity to areas outside the U.S. Midwest; consumer demand for
refined products; transportation logistics; the reliability of
processing units and other equipment; MPC's ability to successfully
implement growth opportunities; modifications to MPLX earnings and
distribution growth objectives; federal and state environmental,
economic, health and safety, energy and other policies and
regulations, including the cost of compliance with the Renewable
Fuel Standard; changes to MPC's capital budget; other risk factors
inherent to MPC's industry; and the factors set forth under the
heading "Risk Factors" in MPC's Annual Report on Form 10-K for the
year ended Dec. 31, 2015, filed with the SEC. In addition, the
forward-looking statements included herein could be affected by
general domestic and international economic and political
conditions. Unpredictable or unknown factors not discussed here, in
MPLX's Form 10-K or in MPC's Form 10-K could also have material
adverse effects on forward-looking statements. Copies of MPLX's
Form 10-K are available on the SEC website, MPLX's website at
http://ir.mplx.com or by contacting MPLX's Investor Relations
office. 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.
MPLX Convertible
Preferred
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: MPLX LP via Globenewswire
HUG#2007638
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