HOUSTON, Oct. 3, 2019 /PRNewswire/ -- Marathon Oil
Corporation (NYSE: MRO; the "Company") announced today that it
has completed three separate transactions that together will
further strengthen the balance sheet and generate annualized cash
cost savings of approximately $6
million.
On September 24, 2019, the Company
entered into a Fourth Amendment to its Amended and Restated Credit
Agreement (the "Credit Agreement") to extend the maturity date to
May 28, 2023 and to reduce the size
from $3.393 billion to $3.0 billion.
On October 1, 2019, the Company
closed a remarketing to investors of sub-series A bonds (the
"Sub-Series A Bonds"), which are part of the $1 billion St. John the Baptist, State of
Louisiana Revenue Refunding Bonds (Marathon Oil Corporation
Project) Series 2017 (the "2017 Bonds") issued and purchased by the
Company on December 18,
2017. The Sub-Series A Bonds were priced on September 12, 2019 and will accrue interest at
the interest rates set forth below.
|
|
Interest
|
Mandatory
|
Maturity
|
Sub-Series A
Bonds
|
Par
Amount
|
Rate
|
Purchase
Date
|
Date
|
Sub-series A-1
Bonds:
|
$200
million
|
2.00%
|
April 1,
2023
|
June 1,
2037
|
Sub-series A-2
Bonds:
|
$200
million
|
2.10%
|
July 1,
2024
|
June 1,
2037
|
Sub-series A-3
Bonds:
|
$200
million
|
2.20%
|
July 1,
2026
|
June 1,
2037
|
The Company will continue to own the remaining $400 million of the 2017 Bonds and has the right
to convert and remarket them to investors at any time up to the
2037 maturity date.
Today, the Company closed the early redemption of its $600
million 2.7% Senior Unsecured Notes due 2020. The Company's
next debt maturity will be its $1
billion 2.8% Senior Unsecured Notes due in 2022.
Together, the three transactions are leverage-neutral, extend
maturities and reflect Marathon Oil Corporation's ongoing
commitment to maintaining a strong balance sheet, providing the
foundation to execute the Company's business plan across a broad
range of commodity prices.
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All
statements, other than statements of historical fact are
forward-looking statements. While the Company believes that its
assumptions concerning future events are reasonable, a number of
factors could cause results to differ materially risk factors,
forward-looking statements and challenges and uncertainties
described in the Company's 2018 Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and other public filings and press
releases, available at www.marathonoil.com. Except as
required by law, the Company undertakes no obligation to revise or
update any forward-looking statements as a result of new
information, future events or otherwise.
Media Relations Contact
Katie Altshuler: 405-365-8948
Investor Relations Contacts
Guy Baber: 713-296-1892
John Reid: 713-296-4380
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SOURCE Marathon Oil Corporation