Published on 9/2/2014 in the Prospect News Investment Grade Daily.
New Issue: Plains All American prices upsized $750 million 3.6% 10-year bonds at 120 bps spread
By Aleesia Forni
Virginia Beach, Sept. 2 – Plains All American Pipeline, LP and PAA Finance Corp. were in Tuesday’s market with an upsized $750 million issue of 3.6% senior notes due 2024 at Treasuries plus 120 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Pricing was at the tight end of talk.
The notes (Baa2/BBB/) sold at 99.842 to yield 3.618%.
Proceeds will be used to repay outstanding borrowings under the company’s commercial paper program and for general partnership purposes.
DNB Markets Inc., Mizuho Securities USA Inc., J.P. Morgan Securities LLC, Barclays, BNP Paribas Securities Corp. and BofA Merrill Lynch are the joint bookrunners.
The oil and natural gas transportation, production and storage company is based in Houston.
| Issuer: | Plains All American Pipeline LP, PAA Finance Corp.
|
| Amount: | $750 million, upsized from $500 million
|
| Description: | Senior notes
|
| Maturity: | Nov. 1, 2024
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, BNP Paribas Securities Corp., BofA Merrill Lynch, DNB Markets Inc., Mizuho Securities USA Inc.
|
| Co-managers: | BBVA Securities Inc., SMBC Nikko Securities America, Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Fifth Third Securities, Inc., ING Financial Markets LLC, Regions Securities LLC, SG Americas Securities, LLC, U.S. Bancorp Investments Inc.
|
| Coupon: | 3.6%
|
| Price: | 99.842
|
| Yield: | 3.618%
|
| Spread: | Treasuries plus 120 bps
|
| Make-whole call: | Treasuries plus 20 bps prior to Aug. 1, 2024, then callable at par
|
| Trade date: | Sept. 2
|
| Settlement date: | Sept. 9
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor's: BBB
|
| Price talk: | Treasuries plus 125 bps area, tightened from Treasuries plus 130 bps to 135 bps
|
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