Plains All American Pipeline has priced a $1.5 billion underwritten public offering of junior subordinated notes, with proceeds expected to help redeem the company’s outstanding Series A and Series B preferred units.
The offering consists of $700 million aggregate principal amount of 6.750% Series A Junior Subordinated Notes due 2056 and $800 million of 7.000% Series B Junior Subordinated Notes due 2056.
Both series are being offered at 100% of face value.
The interest rate on the Series A notes will be subject to adjustment beginning December 15, 2031, while the Series B notes will first reset on December 15, 2036.
After the respective initial reset dates, the rates will reset every five years based on the applicable five-year U.S. Treasury rate plus a spread.
The interest rate for either series will not reset below its initial rate.
Plains also has redemption rights for the notes during specified periods before the first reset date and on applicable interest payment dates afterward.
The offering is expected to close September 14, 2026, subject to customary closing conditions.
Plains plans to use the net proceeds, together with cash on hand and commercial paper borrowings, to redeem all outstanding Series A and Series B preferred units.
The Series A preferred units are expected to be redeemed on or about September 14, while the Series B preferred units are expected to be redeemed on or about October 9.
The company will also pay accrued and unpaid distributions through the applicable redemption dates.
J.P. Morgan Securities, Citigroup Global Markets, Mizuho Securities USA, MUFG Securities Americas and Truist Securities are serving as joint book-running managers for the offering.
Plains All American owns and operates midstream energy infrastructure and provides transportation, storage, terminalling and logistics services for crude oil and natural gas liquids.
