HOUSTON--(BUSINESS WIRE)--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
Merrill Lynch, Pierce, Fenner & Smith
100 West 33rd Street, 3rd Floor
New York, New York 10001
Attention: Prospectus Department
Phone: (800) 294-1322
UBS Securities LLC
299 Park Avenue
New York, New York 10171
Attention: Prospectus Specialist
Phone: (877) 827-6444, ext. 561 3884
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
DNB Markets, Inc.
200 Park Avenue, 31st Floor
New York, New York 10166
Attention: Debt Capital Markets
Phone: (212) 681-3800
Mizuho Securities USA Inc.
320 Park Avenue, 12th Floor
New York, NY 10022
Attention: Debt Capital Markets Desk
Phone (toll-free): (866) 271-7403
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.