MPLX LP Announces $1 Billion Private Placement of 6.5% Series A Convertible Preferred Units
(Thomson Reuters ONE) -
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:
http://hugin.info/155038/R/2007638/742284.pdf
This announcement is distributed by GlobeNewswire on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: MPLX LP via GlobeNewswire
[HUG#2007638]
Datum: 27.04.2016 - 22:18 Uhr
Sprache: Deutsch
News-ID 467063
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