Published on 8/8/2013 in the Prospect News Investment Grade Daily.
New Issue: Plains All American sells upsized $700 million 3.85% notes at 130 bps over Treasuries
By Aleesia Forni
Virginia Beach, Va., Aug. 8 - Plains All American Pipeline, LP and PAA Finance Corp. sold an upsized $700 million of 3.85% 10-year senior notes (Baa2/BBB/) on Thursday with a spread of Treasuries plus 130 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Plains sold the notes at the tight end of talk, which was set in the area of Treasuries plus 135 bps.
The notes priced at 99.792 to yield 3.874%.
Proceeds will be used to repay outstanding borrowings under the company's credit facilities and for general partnership purposes.
J.P. Morgan Securities LLC, BofA Merrill Lynch, DNB Markets, Inc. and Mizuho Securities USA Inc. acted as the joint bookrunners.
The oil and natural gas transportation, production and storage company is based Houston.
| Issuer: | Plains All American Pipeline LP, PAA Finance Corp.
|
| Amount: | $700 million, upsized from $500 million
|
| Net proceeds: | $693 million
|
| Description: | Senior notes
|
| Maturity: | Oct. 15, 2023
|
| Joint bookrunners | : | J.P. Morgan Securities LLC, BofA Merrill Lynch, DNB Markets Inc., Mizuho Securities USA Inc.
|
| Co-managers: | Mitsubishi UFJ Securities (USA), Inc., Scotia Capital (USA) Inc., SG Americas Securities LLC, BBVA Securities Inc., BNP Paribas Securities Corp., RBC Capital Markets LLC, SMBC Nikko Securities America, Inc., BB&T Capital Markets, BMO Capital Markets Corp, CIBC World Markets Corp., Fifth Third Securities Inc., ING Financial Markets LLC, PNC Capital Markets LLC, Regions Securities LLC, U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.85%
|
| Price: | 99.792
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| Yield: | 3.874%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | On or after July 15, 2023 at par
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| Make-whole call: | Treasuries plus 20 bps
|
| Trade date: | Aug. 8
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| Settlement date: | Aug. 15
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| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 135 bps area
|
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