Published on 8/17/2015 in the Prospect News Investment Grade Daily.
New Issue: Plains All American sells $1 billion 4.65% 10-year notes at 250 bps over Treasuries
By Aleesia Forni
Virginia Beach, Aug. 17 – Plains All American Pipeline, LP and PAA Finance Corp. priced $1 billion of 4.65% senior notes (Baa2/BBB+) due Oct. 15, 2025 at Treasuries plus 250 basis points on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
Pricing was at 99.846 to yield 4.668%.
The notes sold at the tight end of guidance set in the Treasuries plus 255 bps area following initial talk in the area of 262.5 bps over Treasuries.
Proceeds will be used to repay outstanding borrowings under the company’s commercial paper program and for general partnership purposes.
Citigroup Global Markets Inc., Mizuho Securities, MUFG and UBS Securities LLC 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.
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| Amount: | $1 billion
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| Description: | Senior notes
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| Maturity: | Oct. 15, 2025
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| Bookrunners: | Citigroup Global Markets Inc., Mizuho Securities, MUFG, UBS Securities LLC, Deutsche Bank Securities Inc., DNB Markets Inc.
|
| Co-managers: | Scotia Capital (USA) Inc., SG Americas Securities, LLC, 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.
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| Coupon: | 4.65%
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| Price: | 99.846
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| Yield: | 4.668%
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| Spread: | Treasuries plus 250 bps
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| Make-whole call: | Treasuries plus 37.5 bps prior to July 15, 2025, then callable at par
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| Trade date: | Aug. 17
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| Settlement date: | Aug. 24
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| Ratings: | Moody’s: Baa2
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| Standard & Poor’s: BBB+
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 255 bps area, tightened from Treasuries plus 262.5 bps area
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