Published on 10/4/2017 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Plains All American sells $800 million 6.125% cumulative preferred units
By Stephanie N. Rotondo
Seattle, Oct. 4 – Plains All American Pipeline LP priced an $800 million offering of 6.125% $1,000-par series B fixed-to-floating-rate cumulative redeemable preferred units, the company said in an FWP filed with the Securities and Exchange Commission on Wednesday.
The deal was first announced on Monday.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.
The distribution rate will be fixed and payable semiannually through Nov. 15, 2022. After that time, the rate will float at Libor plus 411 basis points and will be paid on a quarterly basis.
The units become redeemable on Nov. 15, 2022 at par plus accrued distributions.
The issue can also be redeemed upon a rating agency event at 102% of par plus accrued dividends.
The company does not intend to list the units on any exchange.
Proceeds will be used to repay amounts outstanding under the company’s credit facilities and commercial paper program and for general partnership purposes.
Plains All American is a Houston, Texas-based midstream oil and gas company.
| Issuer: | Plains All American Pipeline LP
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| Securities: | Series B fixed-to-floating-rate cumulative redeemable preferred units
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| Amount: | $800 million
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| Maturity: | Perpetual
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
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| Co-managers: | BBVA Securities Inc., BNP Paribas Securities Corp., DNB Markets, Inc., Mizuho Securities USA Inc., MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., BB&T Capital Markets, BMO Capital Markets Corp., Deutsche Bank Securities Inc. and U.S. Bancorp Investments, Inc.
|
| Dividend: | Fixed at 6.125% until Nov. 15, 2022, then floating at Libor plus 411 bps
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| Price: | Par of $1,000
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| Yield: | 6.125%
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| Call options: | On or after Nov. 15, 2022 at par plus accrued dividends, or upon a rating agency event at 102% of par plus accrued dividends
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| Pricing date: | Oct. 4
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| Settlement date: | Oct. 10
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| Cusip: | 726503AE5
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