Plains All American Pipeline, L.P. (NYSE: PAA)
announced today that it has completed its previously announced
underwritten public offering of common units representing limited
partner interests. Including the overallotment option, which was
exercised in full by the underwriters, the Partnership sold a total of
5,750,000 common units at a price to the public of $80.03 per common
unit.
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 $455 million. The Partnership intends to use the net
proceeds of the offering to fund a portion of the proposed acquisition
(the "BP NGL Acquisition") of BP Canada Energy Company, a wholly owned
subsidiary of BP Corporation North America, Inc. Pending the application
of the net proceeds to fund the BP NGL Acquisition, the Partnership
intends to repay all borrowings outstanding under the PAA credit
facilities and use the balance for general partnership purposes. If the
BP NGL Acquisition is not consummated for any reason, the Partnership
will use the net proceeds for general partnership purposes, including
future acquisitions and capital program expenditures. As a result of the
offering, the Partnership now has 161,318,749 common units outstanding.
Barclays Capital, BofA Merrill Lynch, Citigroup, J.P. Morgan, UBS
Investment Bank, and Wells Fargo Securities are joint book-running
managers of the offering.
A copy of the prospectus supplement and accompanying base prospectus
relating to the offering may be obtained from the underwriters as
follows:
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Barclays Capital Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717
Telephone: (888) 603-5847
Barclaysprospectus@broadridge.com | | |
BofA Merrill Lynch
4 World Financial Center New York, New York 10080 Attn:
Prospectus Department dg.prospectus_requests@baml.com |
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Citigroup Global Markets Inc.
Brooklyn Army Terminal
Attention: Prospectus Delivery Dept.
140 58th Street, Brooklyn, NY 11220
Telephone: (800) 831-9146
batprospectusdept@citi.com | | |
J.P. Morgan Securities LLC via Broadridge Financial Solutions 1155
Long Island Avenue Edgewood, New York 11717 Telephone:
(866) 803-9204
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UBS Securities LLC
Attention: Prospectus Dept.
299 Park Avenue
New York, NY 10171
Telephone: (888) 827-7275
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Wells Fargo Securities
Attention: Equity Syndicate Dept.
375 Park Avenue
New York, NY 10152
Telephone: (800) 326-5897
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 and refined products, as well as in the
processing, transportation, fractionation, storage and marketing of
natural gas liquids. Through its general partner interest and majority
equity ownership position in PAA Natural Gas Storage, L.P. (NYSE: PNG),
PAA owns and operates natural gas storage facilities. PAA is
headquartered in Houston, Texas.
Plains All American Pipeline, L.P.
Roy I. Lamoreaux,
713-646-4222 – 800-564-3036
Director, Investor Relations