Murphy USA to Raise $500 Million in Senior Notes

By Ahmed Jamerson • Tuesday, May 12 11:18 • Permanent Link

Murphy USA said it plans to raise $500 million through a private offering of senior notes due 2034, using the proceeds to reshape its debt stack.

The company said $300 million of the new debt will go toward redeeming its 5.625% senior notes due 2027. Any remaining proceeds are slated to repay borrowings under its revolving credit facility, cover fees and expenses, and support general corporate purposes.

The notes will be issued by Murphy Oil USA, Inc., a wholly owned subsidiary, and guaranteed by Murphy USA and certain domestic subsidiaries on a senior unsecured basis.

Murphy USA said the offering comes as it looks to replace a maturing 2027 issue with longer-dated debt, while also trimming revolving credit borrowings if proceeds allow. As a result of these announcements, the company's shares have moved -2.09% on the market, and are now trading at a price of $565.86. If you want to know more, read the company's complete 8-K report here.

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