Plains All American Pipeline, L.P. Announces Closing of $1.6 Billion Private Placement of 8% Perpetual Series A Convertible P...
January 28 2016 - 4:33PM
Business Wire
Plains All American Pipeline, L.P. (NYSE:PAA) today announced
that it has closed the previously announced sale of approximately
61 million units of a newly authorized series of 8% perpetual
Series A Convertible Preferred Units (the “Preferred Units”) at a
price of $26.25 per unit. The Preferred Units will pay quarterly
distributions at an annual rate of $2.10 per unit. After two years,
the Preferred Units are convertible at the holders’ option into PAA
common units on a one for one basis (subject to customary
anti-dilution adjustments), and are convertible at PAA’s option in
certain circumstances after three years.
The net proceeds, after deducting offering expenses and the
transaction fee due to the purchasers and including the general
partner’s proportionate 2% equity contribution, are approximately
$1.6 billion. This amount represents an increase of approximately
$140 million in additional net proceeds relative to anticipated net
proceeds announced on January 12, 2016, due to additional
commitments received by PAA since that date. PAA expects to use the
proceeds for capital expenditures, repayment of debt, and general
partnership purposes. The primary purchasers included affiliates of
EnCap Investments L.P., EnCap Flatrock Midstream, The Energy
Minerals Group, Kayne Anderson Capital Advisors, L.P., First
Reserve Advisors, L.L.C. and Stonepeak Partners LP.
This press release is neither an offer to sell nor a
solicitation of an offer to purchase the securities described
herein.
Plains All American Pipeline, L.P. is a publicly traded master
limited partnership that owns and operates midstream energy
infrastructure and provides logistics services for crude oil,
natural gas liquids ("NGL"), natural gas and refined products. PAA
owns an extensive network of pipeline transportation, terminalling,
storage and gathering assets in key crude oil and NGL producing
basins and transportation corridors and at major market hubs in the
United States and Canada. On average, PAA handles over 4.4 million
barrels per day of crude oil and NGL in its Transportation segment.
PAA is headquartered in Houston, Texas.
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version on businesswire.com: http://www.businesswire.com/news/home/20160128006510/en/
Plains All American Pipeline, L.P.Ryan Smith,
866-809-1291Director, Investor Relations
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