Aug 12, 2004 |
PAA Completes $350 Million Private Placement of Senior Notes |
Contacts:
Phillip D. Kramer
Executive Vice President and CFO
713/646-4560 – 800/564-3036
A. Patrick Diamond
Manager, Special Projects
713/646-4487 – 800/564-3036
FOR IMMEDIATE RELEASE
Plains All American Pipeline Completes $350 Million Private Placement of Senior Notes
(Houston – August 12, 2004) Plains All American Pipeline, L.P. (NYSE: PAA) announced today that it has completed its previously announced private placement of senior notes. The Partnership placed $175 million of 4.750% Senior Notes due 2009 and $175 million of 5.875% Senior Notes due 2016. The senior notes will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The senior notes are expected to be eligible for trading under Rule 144A.
The net proceeds from the offering will be approximately $345.3 million after deducting the initial purchasers’ discounts and the Partnership’s estimated offering expenses. The Partnership intends to use a portion of the proceeds to repay the remaining balance of approximately $40.8 million outstanding under its 364-day, $200 million Link acquisition facility. Following such repayment, the facility will be terminated. The Partnership intends to use the balance of the net proceeds to repay amounts outstanding under its revolving credit facilities, and any remaining balance for general partnership purposes.
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.
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, fluctuations in the capital markets and other factors and uncertainties inherent in the marketing, transportation, terminalling, gathering and storage of crude oil. More information regarding such risks and uncertainties may be found in the Partnership’s most recent 10-K/A, 10-Q and 8-K filed with the Securities and Exchange Commission.
Plains All American Pipeline, L.P. is engaged in interstate and intrastate crude oil transportation, terminalling and storage, as well as crude oil and LPG gathering and marketing activities, primarily in Texas, Oklahoma, California, Kansas, Louisiana and the Canadian Provinces of Alberta and Saskatchewan. The Partnership’s common units are traded on the New York Stock Exchange under the symbol “PAA.” The Partnership is headquartered in Houston, Texas.
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