(Houston - January 14, 2011) Plains All American Pipeline, L.P. (NYSE: PAA) today announced that it has completed a public offering of $600 million principal amount of 5.00% senior unsecured notes due February 1, 2021 at a public offering price of 99.521% with a yield to maturity of 5.061%.
Total net proceeds from the offering were approximately $592 million and will be used to repay outstanding indebtedness under the Partnership's credit facilities and for general partnership purposes. Amounts repaid under the credit facilities may be reborrowed, as necessary, to fund the Partnership's ongoing expansion capital program, future acquisitions, retirement of other long-term debt, investments in PAA Natural Gas Storage, L.P. (PNG), including for purposes of financing PNG's recently announced definitive agreement to acquire Southern Pines Energy Center natural gas storage facility, or for general partnership purposes.
J.P. Morgan Securities LLC, SunTrust Robinson Humphrey, Inc., Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and DnB NOR Markets, Inc. 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:
J.P. Morgan Securities LLC
383 Madison Avenue
New York, New York 10179
Attention: High Grade
Syndicate Desk
Phone: (212) 834-4533
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SunTrust Robinson Humphrey, Inc.
Attn: Prospectus Department
3333 Peachtree Road, 11th Floor Mail
Code: GA-ATLANTA-3947
Atlanta, GA 30326
Phone: (404) 926-5744
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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
Toll free: 1-800-326-5897
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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 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, TX.
Plains All American Pipeline, L.P.
Roy I. Lamoreaux, 713-646-4222 – 800-564-3036
Director, Investor Relations
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