Nov 02, 2004 |
PAA Enters Into New Five-Year $750 Million Bank Credit Facility |
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
Houston – November 2, 2004) Plains All American Pipeline, L.P. (NYSE: PAA) today announced that it has entered into a new 5-year, $750 million revolving credit facility. The new facility replaces the Partnership’s previous revolving credit facilities, which in the aggregate totaled $625 million. The joint lead arrangers for the new facility are Bank of America Securities LLC and Wachovia Capital Markets, LLC.
“The new credit facility extends our maturities, lowers our cost of credit and provides an additional $125 million of liquidity over our previous facilities,” said Phil D. Kramer, Executive Vice President and CFO of Plains All American. “In addition, this facility is structured to accommodate additional growth as it contains an accordion feature that allows us to increase the facility size to $1 billion. This facility and our issuances of equity and debt during the third quarter have enhanced our financial flexibility and expanded our liquidity. As a result, we believe the Partnership is well-positioned to continue executing its growth oriented business plan.”
Kramer noted that the new facility contains a sub-facility for Canadian borrowings up to $300 million. In addition, the new facility also permits the expansion of the Partnership’s hedged inventory facility from its current level of $300 million up to $500 million. This inventory facility is used to finance the purchase of hedged crude oil inventory for storage when market conditions warrant.
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 availability of, and ability to consummate, acquisition or combination opportunities on terms favorable to the Partnership; our access to capital to fund additional acquisitions and our ability to obtain debt or equity financing on satisfactory terms; successful integration and future performance of assets acquired; maintenance of our credit rating and ability to receive open credit from our suppliers; levels of indebtedness and ability to receive credit on satisfactory terms; and other factors and uncertainties inherent in the marketing, transportation, terminalling, gathering and storage of crude oil and liquefied petroleum gas (“LPG”) discussed in the Partnership’s filings with the Securities and Exchange Commission.
Plains All American Pipeline, L.P. is engaged in interstate and intrastate crude oil transportation, and crude oil gathering, marketing, terminalling and storage, as well as the marketing and storage of liquefied petroleum gas and other petroleum products, in the United States and Canada. 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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