Debt

9 Months Ended

Sep. 30, 2020

MPLX’s outstanding borrowings consist of the following:



(In millions)	September 30, 2020			December 31, 2019
MPLX LP:
Bank revolving credit facility	$	95		$	—
Term loan facility	—			1,000
Floating rate senior notes	1,000			2,000
Fixed rate senior notes	19,506			16,887
Consolidated subsidiaries:
MarkWest	23			23
ANDX	121			190
Financing lease obligations⁽¹⁾	12			19
Total	20,757			20,119
Unamortized debt issuance costs	(118		)	(106		)
Unamortized discount/premium	(290		)	(300		)
Amounts due within one year	(307		)	(9		)
Total long-term debt due after one year	$	20,042		$	19,704

(1) See Note 20 for lease information.

Credit Agreement

Effective July 30, 2019, in connection with the closing of the Merger, MPLX amended and restated its revolving credit facility (as amended, the “MPLX Credit Agreement”) to, among other things, increase borrowing capacity to up to $3.5 billion and extend its term from July 2022 to July 2024. During the nine months ended September 30, 2020, MPLX borrowed $2.995 billion under the MPLX Credit Agreement, at an average interest rate of 1.510 percent, and repaid $2.9 billion. At September 30, 2020, MPLX had $95 million in outstanding borrowings and less than $1 million in letters of credit outstanding under the MPLX Credit Agreement, resulting in total availability of $3.405 billion, or 97.3 percent of the borrowing capacity.

Term Loan Agreement

On September 26, 2019, MPLX entered into a Term Loan Agreement which provides for a committed term loan facility for up to an aggregate of $1 billion. Borrowings under the Term Loan Agreement bear interest, at MPLX’s election, at either (i) the Adjusted LIBO Rate (as defined in the Term Loan Agreement) plus a margin ranging from 75.0 basis points to 100.0 basis points per annum, depending on MPLX’s credit ratings, or (ii) the Alternate Base Rate (as defined in the Term Loan Agreement). On August 18, 2020 MPLX fully repaid the $1.0 billion of outstanding borrowings on the Term Loan Agreement, which resulted in the recognition of $1 million of unamortized issuance costs, which is included on the Consolidated Statements of Income as “Other financial costs”.

Floating Rate Senior Notes

On September 9, 2019, MPLX issued $2.0 billion aggregate principal amount of floating rate senior notes in a public offering, consisting of $1.0 billion aggregate principal amount of notes due September 2021 and $1.0 billion aggregate principal amount of notes due September 2022 (collectively, the “Floating Rate Senior Notes”). The Floating Rate Senior Notes were offered at a price to the public of 100 percent of par. The Floating Rate Senior Notes are callable, in whole or in part, at par plus accrued and unpaid interest at any time on or after September 10, 2020. Interest on the Floating Rate Senior Notes is payable quarterly in March, June, September and December, commencing on December 9, 2019. The interest rate applicable to the floating rate senior notes due September 2021 is LIBOR plus 0.9 percent per annum. The interest rate applicable to the floating rate senior notes due September 2022 is LIBOR plus 1.1 percent per annum.

On September 14, 2020 MPLX redeemed, at par value, all of the $1.0 billion aggregate principal amount of notes due September 2021 which resulted in the recognition of $3 million of unamortized issuance costs, which is included on the Consolidated Statements of Income as “Other financial costs”.

Fixed Rate Senior Notes

MPLX’s senior notes, including those issued by consolidated subsidiaries, consist of various series of senior notes expiring between 2022 and 2058 with interest rates ranging from 1.750 percent to 6.250 percent. Interest on each series of notes is payable semi-annually in arrears on various dates depending on the series of the notes.

On August 18, 2020 MPLX issued $3 billion aggregate principal amount of senior notes in a public offering, consisting of $1.5 billion aggregate principal amount of 1.750 percent senior notes due March 2026 and $1.5 billion aggregate principal amount of 2.650 percent senior notes due August 2030 (collectively, the “August 2020 New Senior Notes”). The August 2020 New Senior Notes were offered at a price to the public of 99.785 percent and 99.913 percent of par, respectively. Interest on each series of notes in the August 2020 New Senior Notes is payable semi-annually in arrears, commencing on March 1, 2021 for the senior notes due March 2026 and commencing on February 15, 2021 for the senior notes due August 2030. The net proceeds were used to repay the $1.0 billion of outstanding borrowings under the MPLX Term Loan Agreement, to repay the $1.0 billion floating rate notes due September 2021 and to redeem all of the $450 million aggregate principal amount of 6.375 percent senior notes due May 2024, $69 million of which was issued by ANDX. These notes were redeemed at 103.2 percent of the aggregate principal amount, which resulted in a payment of $14 million related to the note premium offset by the immediate recognition of $18 million of unamortized debt premium/discount and issuance costs, both of which are included on the Consolidated Statements of Income as “Other financial costs.” Proceeds were also used to reduce amounts outstanding under the MPLX Credit Agreement at the time and will be used to redeem the $300 million aggregate principal amount of 6.250 percent senior notes due October 15, 2022, including approximately $34 million in aggregate principal amount of senior notes issued by ANDX, in October of 2020. The 6.250 percent senior notes are included on the Consolidated Balance Sheets as “Long-term debt due within one year” at September 30, 2020.