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United States : Marathon Petroleum Corporation Enters into $700 Million Five-Year Term Loan Agreement

August 27, 2014

Marathon Petroleum Corporation 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-Mitsubishi UFJ 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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Source: TendersInfo (India)

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