By Aleesia Forni
Virginia Beach, Dec. 2 – Plains All American Pipeline, LP and PAA Finance Corp. priced $1.15 billion of senior notes (Baa2/BBB+/) in two tranches on Tuesday, according to a market source.
The sale included a $500 million tranche of 2.6% five-year notes priced at 99.813 to yield 2.64%, or 105 basis points over Treasuries.
A second tranche was $650 million of 4.9% 30-year bonds sold with a spread of 190 bps over Treasuries. Pricing was at 99.876 to yield 4.907%.
The notes sold at the tight end of price talk.
Proceeds will be used to repay outstanding borrowings under the company’s commercial paper program and for general partnership purposes.
Barclays, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were 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.
|
| Issue: | Notes
|
| Amount: | $1.15 billion
|
| Bookrunners: | Barclays, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC
|
| Trade date: | Dec. 2
|
| Settlement date: | Dec. 9
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 15, 2019
|
| Coupon: | 2.6%
|
| Price: | 99.813
|
| Yield: | 2.64%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 110 bps area, tightened from 120 to 125 bps
|
|
|
| 30-year bonds
|
| Amount: | $650 million
|
| Maturity: | Feb. 15, 2045
|
| Coupon: | 4.9%
|
| Price: | 99.876
|
| Yield: | 4.907%
|
| Spread: | Treasuries plus 190 bps
|
| Price talk: | Treasuries plus 195 bps area, tightened from 205 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
