Plains All American Pipeline, L.P. (NYSE:PAA)
today announced that it has closed the previously announced sale of
approximately 61 million units of a newly authorized series of 8%
perpetual Series A Convertible Preferred Units (the "Preferred Units")
at a price of $26.25 per unit. The Preferred Units will pay quarterly
distributions at an annual rate of $2.10 per unit. After two years, the
Preferred Units are convertible at the holders' option into PAA common
units on a one for one basis (subject to customary anti-dilution
adjustments), and are convertible at PAA's option in certain
circumstances after three years.
The net proceeds, after deducting offering expenses and the transaction
fee due to the purchasers and including the general partner's
proportionate 2% equity contribution, are approximately $1.6 billion.
This amount represents an increase of approximately $140 million in
additional net proceeds relative to anticipated net proceeds announced
on January 12, 2016, due to additional commitments received by PAA since
that date. PAA expects to use the proceeds for capital expenditures,
repayment of debt, and general partnership purposes. The primary
purchasers included affiliates of EnCap Investments L.P., EnCap Flatrock
Midstream, The Energy Minerals Group, Kayne Anderson Capital Advisors,
L.P., First Reserve Advisors, L.L.C. and Stonepeak Partners LP.
This press release is neither an offer to sell nor a solicitation of an
offer to purchase the securities described herein.
Plains All American Pipeline, L.P. is a publicly traded master limited
partnership that owns and operates midstream energy infrastructure and
provides logistics services for crude oil, natural gas liquids ("NGL"),
natural gas and refined products. PAA owns an extensive network of
pipeline transportation, terminalling, storage and gathering assets in
key crude oil and NGL producing basins and transportation corridors and
at major market hubs in the United States and Canada. On average, PAA
handles over 4.4 million barrels per day of crude oil and NGL in its
Transportation segment. PAA is headquartered in Houston, Texas.
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Plains All American Pipeline, L.P.
Ryan Smith, 866-809-1291