Published on 11/15/2016 in the Prospect News Investment Grade Daily.
New Issue: Plains All American prices $750 million 4.5% 10-year notes at 230 bps over Treasuries
By Cristal Cody
Eureka Springs, Ark., Nov. 15 – Plains All American Pipeline, LP and PAA Finance Corp. sold $750 million of 4.5% 10-year senior notes on Tuesday with a spread of 230 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa3/BBB-/BBB) priced at 99.716 to yield 4.535%.
J.P. Morgan Securities LLC, BNP Paribas Securities Corp., BofA Merrill Lynch, Wells Fargo Securities LLC, BBVA Securities Inc., DNB Markets, Inc. and SMBC Nikko Securities America, Inc. were the bookrunners.
Proceeds will be used to repay outstanding borrowings under the company’s senior unsecured revolving credit facility and commercial paper program and for general partnership purposes.
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
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| Description: | Senior notes
|
| Maturity: | Dec. 15, 2026
|
| Bookrunners: | J.P. Morgan Securities LLC, BNP Paribas Securities Corp., BofA Merrill Lynch, Wells Fargo Securities LLC, BBVA Securities Inc., DNB Markets, Inc., SMBC Nikko Securities America, Inc.
|
| Co-managers: | 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: | 4.5%
|
| Price: | 99.716
|
| Yield: | 4.535%
|
| Spread: | Treasuries plus 230 bps
|
| Call features: | Make-whole call of Treasuries plus 35 bps; par call on or after Sept. 15, 2026
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| Trade date: | Nov. 15
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
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