By Andrea Heisinger
New York, July 20 - Plains All American Pipeline, LP sold an upsized $500 million of 4.25% three-year senior notes Monday at Treasuries plus 275 basis points, a source away from the sale said.
The size was originally $300 million, a market source said.
The notes (Baa3/BBB-) priced at 99.802 to yield 4.317%.
They have a make-whole redemption at Treasuries plus 40 bps.
Bookrunners were J.P. Morgan Securities, with BNP Paribas Securities and Wells Fargo Securities as passive books. Co-managers were BMO Capital Markets Corp., Daiwa Securities America Inc., Mizuho Securities America and RBC Capital Markets.
Proceeds are going to supplement capital available under a hedged inventory facility to fund working capital needs.
The notes are being co-issued by PAA Finance Corp.
The oil and petroleum products company is based in Houston.
| Issuer: | Plains All American Pipeline, LP/ PAA Finance Corp.
|
| Issue: | Senior notes
|
| Amount: | $500 million, increased from $300 million
|
| Maturity: | Sept. 1, 2012
|
| Bookrunners: | J.P. Morgan Securities (active), BNP Paribas Securities, Wells Fargo Securities (passive)
|
| Co-managers: | BMO Capital Markets Corp., Daiwa Securities America Inc., Mizuho Securities America, RBC Capital Markets
|
| Coupon: | 4.25%
|
| Price: | 99.802
|
| Yield: | 4.317%
|
| Spread: | Treasuries plus 275 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Trade date: | July 20
|
| Settlement date: | July 23
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
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