El Dorado, Ark.-based Murphy USA Inc. announced the planned private offering of $500 million aggregate principal amount of senior notes due 2031 by its wholly owned subsidiary, Murphy Oil USA Inc., subject to market and other conditions.
Murphy USA intends to use the net proceeds from the offering to finance, in part, its acquisition of Whitehouse Station, N.J.-based Quick Chek Corp., and to repay outstanding debt under its existing senior credit agreement. If the QuickChek acquisition is not consummated, Murphy USA will use the proceeds from this offering for general corporate purposes, which may include funding future acquisitions.
Murphy announced in December 2020 that it will acquire Quick Chek Corp., a family-owned chain of 157 stores located in central and northern New Jersey and the New York metro area. The acquisition is consistent with Murphy USA’s updated capital allocation strategy announced in October. It signals a continued commitment to deliver exceptional and sustained value to long-term shareholders and will complement other ongoing value creation mechanisms, including ongoing productivity improvement initiatives, organic growth, share repurchase and a dividend.
The notes will be guaranteed on a senior unsecured basis by Murphy USA and by certain of Murphy USA’s domestic subsidiaries.
The notes will not be registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act or any applicable state securities laws.
Murphy USA operates more than 1,500 stations in 25 states located primarily in the Southwest, Southeast and Midwest.