Plains All American Pipeline Completes $1 Billion Senior Notes Offering

On January 15, 2025, Plains All American Pipeline, L.P. (PAA) successfully closed a public offering of $1 billion in aggregate principal amount of 5.950% Senior Notes due 2035. The offering, conducted by PAA and PAA Finance Corp., was completed with the assistance of underwriters, including J.P. Morgan Securities LLC, BMO Capital Markets Corp., Mizuho Securities USA LLC, and Scotia Capital (USA) Inc.

The terms of the Notes are governed by an indenture dated September 25, 2002, supplemented by a Thirty-Fourth Supplemental Indenture dated January 15, 2025. The Notes will mature on June 15, 2035, with interest payable semi-annually starting from June 15, 2025. PAA retains the option to redeem some or all of the Notes before maturity at specified redemption prices outlined in the Indenture.

The Notes represent PAA’s senior unsecured obligations and will rank equally in right of payment with all existing and future senior debt. The offering will enhance the company’s financial standing, although it is noted that the Notes will be effectively subordinated to secured debt to the extent of the collateral’s value.

Certain covenants in the Indenture restrict PAA’s ability and its subsidiaries’ ability to engage in certain transactions, subject to exceptions and qualifications. Standard events of default are outlined, including payment defaults, failure to comply with obligations, and events of bankruptcy or insolvency.

For further details on the transaction, interested parties can refer to the prospectus supplement dated January 13, 2025, which is part of the Registration Statement filed on September 6, 2024. The Underwriting Agreement, which facilitated the Offering, is available for review as Exhibit 1.1 in the current Form 8-K filing.

This announcement provides insight into Plains All American Pipeline’s strategic financial direction and reflects its commitment to strengthening its position in the market. The successful completion of this Offering underscores the company’s proactive approach to financing and underscores investor confidence in PAA’s growth strategy.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Plains All American Pipeline’s 8K filing here.

About Plains All American Pipeline

Plains All American Pipeline, L.P., through its subsidiaries, engages in the pipeline transportation, terminaling, storage, and gathering of crude oil and natural gas liquids (NGL) in the United States and Canada. The company operates through two segments, Crude Oil and NGL. The Crude Oil segment offers gathering and transporting crude oil through pipelines, gathering systems, trucks, and on barges or railcars.