By Andrea Heisinger
New York, Sept. 1 - Plains All American Pipeline, LP and PAA Finance Corp. priced an upsized $500 million 5.75% senior notes due Jan. 15, 2020 on Tuesday to yield Treasuries plus 245 basis points, an informed source said.
The size was originally $350 million, the source said. It was increased due to demand, with about $2 billion on the books through more than 150 accounts.
The issue was priced at the tight end of talk, which was in the 250 bps area, he said.
The notes (Baa3/BBB-/) priced at 99.523 to yield 5.813%. They have a make-whole call at Treasuries plus 35 bps.
Bookrunners were Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., UBS Securities LLC and Wells Fargo Securities.
Co-managers were DnB NOR Markets, Inc., Mitsubishi UFJ Securities, SG Americas Securities LLC, BMO Capital Markets Corp., Daiwa Securities America Inc., ING Financial Markets, Scotia Capital and US Bancorp Investments.
Proceeds will be used to repay all or a portion of outstanding borrowings under a credit facility incurred to fund the cash requirement of the remaining 50% interest for the acquisition of PAA/Vulcan Gas Storage LLC. They may also be used to redeem outstanding senior notes due 2014 and for general partnership purposes.
The petroleum and natural gas company is based in Houston.
| Issuers: | Plains All American Pipeline, LP and PAA Finance Corp.
|
| Issue: | Senior notes
|
| Amount: | $500 million, increased from $350 million
|
| Maturity: | Jan. 15, 2020
|
| Bookrunners: | Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., UBS Securities LLC, Wells Fargo Securities
|
| Co-managers: | DnB NOR Markets, Inc., Mitsubishi UFJ Securities, SG Americas Securities LLC, BMO Capital Markets Corp., Daiwa Securities America Inc., ING Financial Markets, Scotia Capital, US Bancorp Investments
|
| Coupon: | 5.75%
|
| Price: | 99.523
|
| Yield: | 5.813%
|
| Spread: | Treasuries plus 245 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Trade date: | Sept. 1
|
| Settlement date: | Sept. 4
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Price talk: | 250 bps area
|
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