(Houston - July 23, 2009) Plains All American Pipeline, L.P. (NYSE:PAA) today announced that it has completed a public offering of $500 million principal amount of 4.25% senior unsecured notes due September 1, 2012 at an offering price of $99.802 (per $100 of principal) to yield 4.317%.
Total net proceeds from the offering were approximately $497 million, and will be used to supplement the capital available under the Partnership's existing hedged inventory facility to fund working capital needs associated with base levels of routine foreign crude oil import and for seasonal LPG inventory requirements. The hedged inventory facility matures in November 2009 and is generally renewed annually. Excess net proceeds, if any, will be used for general partnership purposes, including reductions in outstanding borrowings under the Partnership's credit facilities.
J.P. Morgan, BNP PARIBAS and Wells Fargo Securities were book-running managers of the offering. 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 Inc.
Attn: High Grade Syndicate Desk
270 Park Avenue
New York, New York 10017
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BNP Paribas Securities Corp.
Debt Syndicate Desk
787 Seventh Avenue
New York, New York 10019
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Wells Fargo Securities, LLC
Customer Information Center
Attn: Syndicate Operations
1525 West W.T. Harris Blvd.
Charlotte, North Carolina 28262-0675
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The senior 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.
Plains All American Pipeline, L.P. is a publicly traded master limited partnership engaged in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas related petroleum products. Through its 50% indirect ownership in PAA Natural Gas Storage, LLC, the Partnership is also engaged in the development and operation of natural gas storage facilities. The Partnership is headquartered in Houston, Texas.
Contacts:
Roy I. Lamoreaux
Manager, Investor Relations
713-646-4222 or 800-564-3036
or
Al P. Swanson
Senior Vice President & CFO
713-646-4455 or 800-564-3036
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