(Houston - November 19, 2010) Plains All American Pipeline, L.P. (NYSE: PAA) announced today that it has completed its previously announced underwritten public offering of common units. The Partnership sold a total of 4,200,000 common units at a price to the public of $62.60 per common unit. The underwriters have a 30-day option to purchase up to 630,000 additional common units to cover over-allotments, if any.
Total net proceeds from the offering, including the general partner's proportionate capital contribution and after deducting underwriting discounts and commissions and estimated offering expenses, were approximately $260 million. The Partnership intends to use the net proceeds from the offering, including the proceeds from any exercise of the over-allotment option, to reduce outstanding borrowings under its credit facilities and for general partnership purposes. Amounts repaid under the Partnership's credit facilities may be reborrowed to fund its ongoing capital program, potential future acquisitions, including the pending Nexen acquisition, or for general partnership purposes. As a result of the offering, the Partnership now has 140,619,175 common units outstanding.
Citi, BofA Merrill Lynch, Morgan Stanley and Wells Fargo Securities were joint 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:
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Citi
Brooklyn Army Terminal
Attention: Prospectus Delivery Dept.
140 58th Street, Brooklyn, NY 11220
Telephone: (800) 831-9146
Email: batprospectusdept@citi.com
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Morgan Stanley
Attn: Prospectus Dept.
180 Varick Street, 2nd Floor
New York, NY 10014
Telephone: (866) 718-1649
Email: prospectus@morganstanley.com
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BofA Merrill Lynch
4 World Financial Center
New York, New York 10080
Attn: Prospectus Department
Email: dg.prospectus_requests@baml.com
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Wells Fargo Securities
Attn: Equity Syndicate Dept.
375 Park Avenue
New York, New York 10152
Telephone: (800) 326-5897
Email: cmclientsupport@wellsfargo.com
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The common units 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, refined products and liquefied petroleum gas and other natural gas related petroleum products. Through its general partner interest and majority equity ownership position in PAA Natural Gas Storage, L.P. (NYSE: PNG), PAA is also engaged in the development and operation of natural gas storage facilities. PAA is headquartered in Houston, Texas.
Contacts:
Roy I. Lamoreaux, 713-646-4222 – 800-564-3036
Director, Investor Relations
or
Al Swanson, 713-646-4455 – 800-564-3036
Senior Vice President & CFO
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