By Andrea Heisinger
New York, March 13 - Plains All American Pipeline LP and PAA Finance Corp. jointly sold $1.25 billion of senior notes (Baa2/BBB-/) in two tranches Tuesday, a market source said.
The $750 million of 3.65% 10-year notes were priced at 99.823 to yield 3.67% with a spread of Treasuries plus 160 basis points. The notes sold at the tight end of talk in the 165 bps area.
There is a make-whole call at 25 bps over Treasuries until March 1, 2022 and a par call after that date.
A $500 million tranche of 5.15% 30-year bonds sold at 99.755 to yield 5.165% with a spread of 195 bps over Treasuries. The bonds also priced at the low end of guidance in the 165 bps area, plus or minus 5 bps.
The notes have a make-whole call at Treasuries plus 30 bps until Dec. 1, 2041 and a par call after that date.
Active bookrunners were Bank of America Merrill Lynch, J.P. Morgan Securities LLC, UBS Securities LLC and Wells Fargo Securities LLC. Passive bookrunners were DNB NOR Markets Inc. and Mizuho Securities USA Inc.
Co-managers were BMO Capital Markets Corp., Comerica Securities, Inc., Fifth Third Securities, Inc., ING Financial Markets LLC, Mitsubishi UFJ Securities (USA), Inc., Morgan Keegan & Co. Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC and U.S. Bancorp Investments, Inc.
Proceeds will be used to fund a portion of the consideration for the acquisition of BP's Canadian natural gas liquids business. Pending that use, the proceeds may be used for general partnership purposes.
There is a change-of-control put at 101% if the acquisition is not done by June 1.
The company handles the transportation and storage of petroleum products and is based in Houston.
| Issuer: | Plains All American Pipeline LP, PAA Finance Corp.
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, UBS Securities LLC, Wells Fargo Securities LLC (active), DNB NOR Markets Inc., Mizuho Securities USA Inc. (passive)
|
| Co-managers: | BMO Capital Markets Corp., Comerica Securities, Inc., Fifth Third Securities, Inc., ING Financial Markets LLC, Mitsubishi UFJ Securities (USA), Inc., Morgan Keegan & Co. Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC, U.S. Bancorp Investments, Inc.
|
| Change-of-control put: | At 101% if BP acquisition not done by June 1
|
| Trade date: | March 13
|
| Settlement date: | March 22
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | June 1, 2022
|
| Coupon: | 3.65%
|
| Price: | 99.823
|
| Yield: | 3.67%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 25 bps until March 1, 2022, after at par
|
| Price talk: | 165 bps area
|
|
|
| 30-year bonds
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| Amount: | $500 million
|
| Maturity: | June 1, 2042
|
| Coupon: | 5.15%
|
| Price: | 99.755
|
| Yield: | 5.165%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until Dec. 1, 2041, par call after
|
| Price talk: | 200 bps area, plus or minus 5 bps
|
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