PAA Prices Public Offering of Series B Preferred Units
October 04 2017 - 5:22PM
Business Wire
Plains All American Pipeline, L.P. (NYSE: PAA) today announced
that it has priced an underwritten public offering of 800,000 of
its 6.125% Series B Fixed-to-Floating Rate Cumulative Redeemable
Perpetual Preferred Units (the “Series B Preferred Units”) at a
price of $1,000 per Series B Preferred Unit. Distributions on the
Series B Preferred Units will be payable semi-annually in arrears
on the 15th day of May and November through and including November
15, 2022 and, thereafter, quarterly in arrears on the 15th day of
February, May, August, and November of each year (each, a
"Distribution Payment Date") to holders of record as of the close
of business on the first business day of the month of the
applicable Distribution Payment Date. The initial distribution rate
for the Series B Preferred Units from and including the date of
original issue to, but not including, November 15, 2022 will be
6.125% per annum of the $1,000 liquidation preference per unit
(equal to $61.25 per unit per annum). On and after November 15,
2022, distributions on the Series B Preferred Units will accumulate
at a percentage of the liquidation preference equal to an annual
floating rate equal to the three-month LIBOR plus a spread of
4.11%. The offering is expected to close on October 10, 2017,
subject to the satisfaction of customary closing conditions.
The Partnership expects to receive net proceeds of approximately
$787.8 million, after deducting the underwriters’ discounts and
estimated offering expenses. The Partnership intends to use the net
proceeds from this offering to repay amounts outstanding under its
credit facilities and commercial paper program and for general
partnership purposes, which may include, among other things,
repayment of indebtedness, acquisitions, capital expenditures and
additions to working capital.
J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Morgan Stanley & Co. LLC and Wells Fargo
Securities, LLC are acting as joint book-running managers of the
offering.
The Series B Preferred Units are being offered and sold pursuant
to an effective shelf registration statement on Form S-3 previously
filed with the Securities and Exchange Commission, and only by
means of a prospectus supplement and accompanying base prospectus.
Copies of the prospectus supplement and accompanying base
prospectus relating to the offering may be obtained from the
underwriters as follows:
J.P. Morgan Securities LLC
Attention: Investment Grade Syndicate
Desk
383 Madison Avenue
New York, New York 10179
Telephone: 212-834-4533
Merrill Lynch, Pierce, Fenner &
Smith
Incorporated
200 North College Street
NC1-004-03-43
Charlotte NC 28255-0001
Attention: Prospectus Department
Telephone: 1-800-294-1322
Email: dg.prospectus_requests@baml.com
Morgan Stanley & Co. LLC
180 Varick Street, 2nd Floor
New York, New York 10014
Attention: Prospectus Department
Telephone: (866) 718-1649
Email: prospectus@morganstanley.com
Wells Fargo Securities, LLC
608 2nd Avenue South, Suite 1000
Minneapolis, Minnesota 55402
Attention: WFS Customer Service
Telephone: 800-645-3751
This news release does not constitute an offer to sell or a
solicitation of an offer to buy the securities described herein,
nor shall there be any sale of these securities in any state or
jurisdiction in which such an offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
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 5 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/20171004006416/en/
Investors:Plains All American Pipeline, L.P.Brett Magill,
(866) 809-1291Manager, Investor Relations
Plains All American Pipe... (NYSE:PAA)
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