Plains All American Prices $1.5B Junior Subordinated Notes to Redeem Preferred Units
PAA sits 65% above its 52-week low of $15.685.
Summary
PAA priced a $1.5 billion offering of junior subordinated notes due 2056, split between $700 million of 6.750% Series A notes and $800 million of 7.000% Series B notes, both at par. Proceeds, along with cash and commercial paper, will redeem all outstanding Series A and Series B preferred units on September 14 and October 9, respectively. This refinancing replaces higher-cost preferred equity with long-dated subordinated debt, locking in fixed rates until the first reset dates in 2031 and 2036. The transaction follows the company's recent $2.7 billion revolving credit facility and Q2 leverage reduction to 3.1x, continuing a balance sheet optimization strategy. The offering is expected to close September 14, subject to customary conditions.
At the time of this announcement, PAA was trading at $25.90 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $18.2B. The 52-week trading range was $15.69 to $26.11. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.