|Sep 30, 2002
|PAA Announces Completion of Financing Transactions; Updates Current Financial Position
|(Houston – September 30, 2002) Plains All American Pipeline, L.P. (NYSE: PAA) announced that it has recently completed several transactions designed to enhance the Partnership’s financial position, augment its liquidity and financial flexibility and position it for future growth:
In July, the Partnership amended its senior secured credit facilities to enable it to increase the size of its Letter of Credit and Hedged Inventory Facility by $150 million and also extend the maturity of that facility to April 2005;
In August, the Partnership completed a public offering of 6,325,000 common units, raising net proceeds of approximately $145 million; and
In September, the Partnership completed a private offering of $200 million of senior notes due 2012 raising net proceeds of approximately $196 million.
“These past three months have been extremely active for the Partnership,” said Greg L. Armstrong, Chairman and Chief Executive Officer of the Partnership. “In that time period, we completed the acquisition of Shell’s West Texas business units, continued to execute our financial growth strategy by completing these financing transactions under less than optimum market conditions, and obtained upgrades or were placed on positive credit watch by each of the ratings agencies.” Armstrong noted that in September, Moody’s Investors Service upgraded the Partnership’s senior implied credit rating to Ba1 (stable outlook), while Standard & Poor’s reiterated the Partnership’s BB+ corporate credit rating and had in June placed the Partnership on CreditWatch with positive implications.
“With over $400 million of immediate liquidity available under our revolving credit facilities, we believe we are well-positioned to take advantage of one of the most attractive acquisition markets in recent history.” As of the end of the third quarter, the Partnership estimates that it will have approximately $15 million outstanding on its $450 million of revolving credit facilities that mature in 2005, approximately $297 million of senior secured term loans with final maturity dates in 2006 and 2007 and $200 million of Senior Notes which mature in 2012.
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties, as identified and discussed in the Partnership’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and quarterly report on Form 10-Q.
Plains All American Pipeline, L.P. is engaged in interstate and intrastate crude oil transportation, terminalling and storage, as well as crude oil gathering and marketing activities, primarily in Texas, California, Oklahoma, Louisiana and the Canadian Provinces of Alberta, Saskatchewan and Manitoba. The Partnership’s common units are traded on the New York Stock Exchange under the symbol “PAA.” The Partnership is headquartered in Houston, Texas.