Plains All American Pipeline, L.P. (NYSE: PAA)
today announced that it has completed an underwritten public offering of
two series of senior notes (the "Notes"): $750 million aggregate
principal amount of 3.65% senior unsecured notes due June 1, 2022, at a
public offering price of 99.823% with a yield to maturity of 3.67%; and
$500 million aggregate principal amount of 5.15% senior unsecured notes
due June 1, 2042, at a public offering price of 99.755% with a yield to
maturity of 5.165%.
Total net proceeds of the offering were $1.237 billion. The Partnership
intends to use the net proceeds of the offering to fund a portion of the
consideration for the acquisition of all outstanding shares of BP Canada
Energy Company, a wholly owned subsidiary of BP Corporation North
America Inc. (the "BP NGL Acquisition"). Pending the application of the
net proceeds to fund the BP NGL Acquisition, the Partnership intends to
use the net proceeds for general partnership purposes. If the BP NGL
Acquisition is not consummated for any reason, the Partnership may use
the net proceeds for general partnership purposes, including future
acquisitions and capital program expenditures. Alternatively, if the BP
NGL Acquisition is not closed on or prior to June 1, 2012 or the
acquisition agreement relating thereto is terminated on an earlier date,
the Partnership will have the right to redeem all, but not less than
all, of either or both series of Notes, and the Partnership may use all
or part of the net proceeds, together with any additional funds the
Partnership may provide, as necessary, to fund any such redemption.
J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, UBS Securities LLC, Wells Fargo Securities, LLC, DNB
Markets, Inc., and Mizuho Securities USA Inc. acted as joint
book-running managers of the offering.
Copies of the prospectus supplement and accompanying prospectus relating
to the offering may be obtained from the underwriters as follows:
J.P. Morgan Securities LLC
383 Madison Avenue
New York, New York 10179
Attention: High Grade Syndicate Desk
Phone: (212) 834-4533
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Merrill Lynch, Pierce, Fenner & Smith
Incorporated
100 West 33rd Street, 3rd Floor
New York, New York 10001
Attention: Prospectus Department
Phone: (800) 294-1322
E-mail: dg.prospectus_requests@baml.com |
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UBS Securities LLC
299 Park Avenue
New York, New York 10171
Attention: Prospectus Specialist
Phone: (877) 827-6444, ext. 561 3884
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Wells Fargo Securities, LLC
1525 West W.T. Harris Blvd., NC0675
Charlotte, North Carolina 28262
Attention: Capital Markets Client Support
Phone (toll-free): (800) 326-5897
E-mail: cmclientsupport@wellsfargo.com | |
DNB Markets, Inc.
200 Park Avenue, 31st Floor
New York, New York 10166
Attention: Debt Capital Markets
Phone: (212) 681-3800
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Mizuho Securities USA Inc.
320 Park Avenue, 12th Floor
New York, NY 10022
Attention: Debt Capital Markets Desk
Phone (toll-free): (866) 271-7403
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The Notes were offered and sold pursuant to an effective shelf
registration statement on Form S-3 previously filed with the Securities
and Exchange Commission. 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 jurisdiction. The offering may be made only by means of
a prospectus and related prospectus supplement.
Except for the historical information contained herein, the matters
discussed in this news release are forward-looking statements that
involve certain risks and uncertainties. These risks and uncertainties
include, among other things, the stability of the capital markets and
other factors and uncertainties inherent in the marketing,
transportation, terminalling, gathering and storage of crude oil and
other petroleum-related products discussed in the Partnership's filings
with the Securities and Exchange Commission.
Plains All American Pipeline, L.P. is a publicly-traded master limited
partnership engaged in the transportation, storage, terminalling and
marketing of crude oil and refined products, as well as in the
processing, transportation, fractionation, storage and marketing of
natural gas liquids. Through its general partner interest and majority
equity ownership position in PAA Natural Gas Storage, L.P. (NYSE: PNG),
PAA owns and operates natural gas storage facilities. PAA is
headquartered in Houston, Texas.
Plains All American Pipeline, L.P.
Roy I. Lamoreaux, 713-646-4222 –
800-564-3036
Director, Investor Relations