Plains GP Completes Public Offering of $1 Billion Senior Notes due 2035

Plains GP Holdings, L.P. recently announced that its consolidated subsidiaries, Plains All American Pipeline, L.P. (PAA) and PAA Finance Corp., successfully concluded a public offering of $1 billion aggregate principal amount of 5.950% Senior Notes due in 2035. The transaction was completed on January 15, 2025.

Under the terms of the offering, the Notes will mature on June 15, 2035, with interest payable semi-annually on each June 15 and December 15 starting from June 15, 2025. The Notes are the senior unsecured obligations of PAA and will rank equally in right of payment with all existing and future senior debt of PAA, and senior in right of payment to all future subordinated debt.

Plains GP’s filing with the Securities and Exchange Commission stated that the Notes will be subordinated to all existing and future secured debts to the extent of the collateral securing such indebtedness. The filing also highlighted certain restrictions on PAA and certain of its subsidiaries regarding entering into transactions, incurring liens, merging or consolidating with other companies, and transferring or selling assets, subject to exceptions and qualifications.

In the event of default under the indenture, the Trustee or holders of at least 25% in principal amount of the outstanding Notes may declare the amounts due and payable. The document outlined specific events of default, including failure to make payments, non-compliance with obligations, and insolvency events.

Further details on the terms and conditions of the Notes, Base Indenture, and Supplemental Indenture can be found in the prospectus supplement dated January 13, 2025, which is part of the Registration Statement. The Thirty-Fourth Supplemental Indenture, dated January 15, 2025, was included in the submission to the SEC.

Additionally, on January 13, 2025, the Issuers entered into an Underwriting Agreement with J.P. Morgan Securities LLC, BMO Capital Markets Corp., Mizuho Securities USA LLC, and Scotia Capital (USA) Inc., as representatives of the underwriters, for the offering of the Notes. The Underwriting Agreement was filed along with the Registration Statement.

Plains GP’s successful completion of this public offering indicates a strategic move to secure financing through the issuance of Senior Notes due in 2035. The company remains poised to utilize the proceeds to enhance its operational capabilities and finance future growth initiatives.

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

About Plains GP

Plains GP Holdings, L.P., through its subsidiary, Plains All American Pipeline, L.P., owns and operates midstream infrastructure systems in the United States and Canada. It operates in two segments, Crude Oil and Natural Gas Liquids (NGLs). The company engages in the gathering and transporting crude oil and NGLs using pipelines, gathering systems, and trucks.