| Item 1.01 | Entry into a Material Definitive Agreement. |
On December 2, 2020, Magellan Midstream Partners, L.P. (the “Partnership”) entered into an underwriting agreement (the “Underwriting Agreement”) with Wells Fargo Securities, LLC, Barclays Capital Inc., PNC Capital Markets LLC, TD Securities (USA) LLC and Truist Securities, Inc., each acting on behalf of itself and collectively as the representatives of the several underwriters named therein (collectively, the “Underwriters”), with respect to the issuance and sale in an underwritten public offering (the “Offering”) by the Partnership of an additional $300,000,000 aggregate principal amount of the Partnership’s 3.95% Senior Notes due 2050 (the “Additional Notes”). The Additional Notes were issued at 109.678% of the face value amount and the Partnership agreed to sell the Additional Notes to the Underwriters at a purchase price of 108.803% of the principal amount thereof. The material terms of the Offering are described in the prospectus supplement dated December 2, 2020, as filed by the Partnership with the Securities and Exchange Commission (the “Commission”). The offer and sale of the Additional Notes is registered with the Commission pursuant to the Partnership’s Registration Statement on Form S-3 (File No. 333-223097) that was filed with the Commission on February 20, 2018. The Additional Notes are additional notes under the Indenture, dated as of August 11, 2010, as supplemented by the Tenth Supplemental Indenture, dated as of August 19, 2019, with U.S. Bank National Association, as trustee, (the “Indenture”) pursuant to which the Partnership issued $500,000,000 aggregate principal amount of its 3.950% Senior Notes due 2050 (the “Original Notes”). The Additional Notes, together with the Original Notes, will be treated as a single series for purposes of giving notices, consents, waivers, amendments and taking any other action permitted under the Indenture. Subject to customary conditions to closing, the transactions contemplated by the Underwriting Agreement will be consummated on December 16, 2020.
The Underwriting Agreement contains customary representations, warranties and agreements by the Partnership, customary conditions to closing, indemnification obligations of the Partnership and the Underwriters, including for liabilities under the Securities Act of 1933, as amended, other obligations of the parties and termination provisions. The foregoing description of the Underwriting Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Underwriting Agreement, which is filed as Exhibit 1.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Some of the Underwriters and their affiliates have engaged in, and may in the future engage in, investment banking and other commercial dealings in the ordinary course of business with the Partnership and its affiliates. They have received, or may in the future receive, customary fees and commissions for these transactions. In particular, each of the Underwriters or their affiliates has a lending relationship with the Partnership or serve as a broker in its common unit repurchase program, or both, and U.S. Bank National Association, the trustee, is also an affiliate of U.S. Bancorp Investments, Inc., one of the Underwriters.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
