Item 1.01 Entry into a Material Definitive Agreement.
On
Commitment fees ranging from 10.0 basis points to 25.0 basis points per annum, depending on MPC's credit ratings (currently 12.5 basis points), accrue on the unused commitments under the New MPC 364-Day Credit Agreement. Borrowings under the New MPC 364-Day Credit Agreement bear interest, at MPC's election, at either (a) the Adjusted LIBO Rate (as defined in the New MPC 364-Day Credit Agreement) plus a margin ranging from 137.5 basis points to 200.0 basis points per annum, depending on MPC's credit ratings (currently 150.0 basis points) or (b) the Alternate Base Rate (as defined in the New MPC 364-Day Credit Agreement) plus a margin ranging from 37.5 basis points to 100.0 basis points per annum, depending on MPC's credit ratings (currently 50.0 basis points).
The New MPC 364-Day Credit Agreement contains representations and warranties, affirmative and negative covenants and events of default that MPC considers customary for agreements of similar nature and type and substantially similar to those contained in MPC's existing revolving credit facilities, including a covenant that requires MPC to maintain a ratio (expressed as a percentage) of Consolidated Net Debt (as defined in the New MPC 364-Day Credit Agreement) to Total Capitalization (as defined in the New MPC 364-Day Credit Agreement) not to exceed 65% as of the last day of each fiscal quarter. If an event of default exists under the New MPC 364-Day Credit Agreement, the lenders may terminate the commitments thereunder and require the immediate repayment of all outstanding borrowings. In addition to commitment fees and interest charges, MPC agreed to pay an annual administrative fee and other customary fees to, and to reimburse certain expenses incurred by, the agents and the lenders in connection with entering into and administrating the New MPC 364-Day Credit Agreement.
The availability of the lending commitments under the New MPC 364-Day Credit
Agreement is contingent upon customary conditions, including the payment of all
amounts outstanding and the termination of the lending commitments under the
2019 364-Day Credit Agreement. The availability date is expected to occur on or
about
Certain parties to the New MPC 364-Day Credit Agreement have in the past performed, and may in the future from time to time perform, investment banking, financial advisory, lending or commercial banking services for MPC and its subsidiaries and affiliates, for which they have received, and may in the future receive, customary compensation and reimbursement of expenses.
The above descriptions of the material terms and conditions of the New MPC 364-Day Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of such agreement, which is filed as Exhibit 10.1 hereto and is incorporated by reference herein.
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit Number Description 10.1 Revolving Credit Agreement, dated as ofSeptember 23, 2020 , by and amongMarathon Petroleum Corporation , as borrower,JPMorgan Chase Bank, N.A ., as administrative agent, each ofJPMorgan Chase Bank, N.A .,Wells Fargo Securities, LLC , Barclays Bank PLC,BofA Securities, Inc. ,Citibank, N.A .,Mizuho Bank, Ltd. ,MUFG Bank, Ltd. , Royal Bank of Canada andTD Securities (USA) LLC , as joint lead arrangers and joint bookrunners,Wells Fargo Bank, National Association , as syndication agent, each ofBank of America, N.A ., Barclays Bank PLC,Citibank, N.A .,Mizuho Bank, Ltd. ,MUFG Bank, Ltd. , Royal Bank of Canada andTD Securities (USA) LLC , as documentation agents, and the other lenders and issuing banks that are parties thereto. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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