Plains All American Pipeline, L.P. (NYSE: PAA)
and PAA Natural Gas Storage (NYSE: PNG)
today announced that they have closed the renewal and extension of their
principal bank credit facilities. PAA also announced today that the
company has established an unsecured commercial paper program on a
private placement basis.
PAA renewed two credit facilities: a $1.6 billion, five-year senior
unsecured revolving credit facility and a $1.4 billion, three-year
senior secured hedged inventory facility. The maturities associated with
these facilities represent two-year extensions of previous facilities,
which now mature in August 2018 and August 2016, respectively. Both
facilities contain accordion features that permit PAA (subject to
receipt of incremental lender commitments) to increase borrowing
capacity to $2.1 billion and $1.9 billion, respectively.
PNG extended the maturity of its $550 million, five-year senior
unsecured credit facility by one year. The facility now matures in
August 2017. The credit facility includes a $200 million Gulf Coast
Opportunity Zone (GO Zone) tax-exempt term loan and a $350 million
revolving credit facility. The revolver includes an accordion feature
that permits PNG (subject to receipt of incremental lender commitments)
to increase borrowing capacity to $550 million.
Bank of America, N.A. will serve as Administrative Agent for the
facilities. Merrill Lynch, Pierce, Fenner & Smith Incorporated served as
Joint Lead Arranger for the facilities and was joined by Citigroup; DNB;
J.P. Morgan; Societe Generale; SunTrust Robinson Humphrey; and Wells
Fargo Securities, LLC as Joint Lead Arrangers on one or more of the
facilities. The new credit facilities became effective on August 16,
2013.
Pursuant to the commercial paper program, PAA or its indirect subsidiary
Plains Midstream Canada ULC ("PMC") may issue, from time to time,
unsecured commercial paper notes up to a maximum aggregate amount
outstanding at any time of $1.5 billion. The notes will be backstopped
by PAA's revolving credit facilities, and any commercial paper notes
issued by PMC will be guaranteed by PAA. The proceeds from the issuance
of the notes will be used for general partnership purposes.
"We appreciate the continued strong support from our bank group," said
Al Swanson, Executive Vice President and CFO of Plains All American and
PAA Natural Gas Storage. "In addition to our $1.6 billion 2013 capital
program, PAA has a large portfolio of organic growth projects and
remains active in pursuit of acquisition opportunities. These
facilities, along with the commercial paper program, support Plains'
strong liquidity, enabling substantial financial flexibility to execute
our growth plans."
The notes to be offered under the commercial paper program will not be
registered under the Securities Act of 1933 and may not be offered or
sold in the United States absent registration or an applicable exemption
from registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy notes under
PAA's commercial paper program.
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.
PAA Natural Gas Storage is a publicly traded master limited partnership
engaged in the development, acquisition, operation and commercial
management of natural gas storage facilities. The Partnership currently
owns and operates three natural gas storage facilities located in
Louisiana, Mississippi and Michigan. The Partnership's general partner,
as well as the majority of the Partnership's limited partner interests,
is owned by Plains All American Pipeline, L.P. (NYSE: PAA). PNG is
headquartered in Houston, Texas.
Plains All American Pipeline, L.P.
Roy I. Lamoreaux, 713-646-4222 –
800-564-3036
Director, Investor Relations