Published on 12/3/2012 in the Prospect News Investment Grade Daily.
New Issue: Plains All American, PAA Finance jointly price $750 million of bonds due 2023, 2043
By Andrea Heisinger
New York, Dec. 3 - Plains All American Pipeline, LP and PAA Finance Corp. tapped the market for an upsized $750 million of senior notes (Baa2/BBB/) in two tranches on Monday, a market source said.
The size was increased from $500 million.
The $400 million of 2.85% notes due 2023 were sold at 99.752 to yield 2.878% with a spread of Treasuries plus 125 basis points. There is a make-whole call at Treasuries plus 20 bps until Oct. 31, 2022, with a par call after that date.
A $350 million tranche of 4.3% bonds due 2043 was priced at 99.925 to yield 4.304% with a spread of 150 bps over Treasuries. The tranche carries a make-whole call at Treasuries plus 25 bps until July 31, 2042 and a par call after that date.
Each of the tranches came in sharply from price talk, the market source said. The 10-year notes were talked 25 bps wider in the 150 bps area while the 30-year bonds had guidance 20 bps wider in the 170 bps area.
Bookrunners were Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc. and UBS Securities LLC.
Proceeds will be used to repay outstanding borrowings under a credit facility and for general partnership purposes.
Plains All American was last in the market with a $1.25 billion sale of notes in two parts on March 13, 2012. The 3.65% 10-year notes from that offering sold at 160 bps over Treasuries while a 5.15% 30-year bond priced at 195 bps over Treasuries.
The oil and natural gas transportation, production and storage company is based Houston.
| Issuer: | Plains All American Pipeline, LP, PAA Finance Corp.
|
| Issue: | Senior notes
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| Amount: | $750 million, increased from $500 million
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| Bookrunners: | Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., UBS Securities LLC
|
| Co-managers: | Mitsubishi UFJ Securities (USA), Inc., Scotia Capital (USA) Inc., SMBC Nikko Capital Markets Ltd., SG Americas Securities, LLC, BB&T Capital Markets LLC, BMO Capital Markets Corp., CIBC World Markets Corp., Fifth Third Securities, Inc., ING Financial Markets LLC, PNC Capital Markets LLC, U.S. Bancorp Investments, Inc.
|
| Trade date: | Dec. 3
|
| Settlement date: | Dec. 10
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| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
|
|
| 10-year notes
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| Amount: | $400 million
|
| Maturity: | Jan. 31, 2023
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| Coupon: | 2.85%
|
| Price: | 99.752
|
| Yield: | 2.878%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole at Treasuries plus 20 bps to Oct. 31, 2022, par call after
|
| Price talk: | 150 bps area
|
|
|
| 30-year bonds
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| Amount: | $350 million
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| Maturity: | Jan. 31, 2043
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| Coupon: | 4.3%
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| Price: | 99.925
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| Yield: | 4.304%
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole at Treasuries plus 25 bps to July 31, 2042, par call after
|
| Price talk: | 170 bps area
|
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