Plains All American Renews and Extends Credit Facilities
27 August 2021 - 6:16AM
Plains All American Pipeline and Plains GP Holdings (Nasdaq: PAA
& PAGP) (collectively, “Plains”) today announced that PAA has
renewed and extended its two credit facilities (the “Facilities”).
The renewed and extended Facilities have an aggregate initial
borrowing capacity of $2.7 billion and initial maturities in 2024
and 2026, replacing the previous facilities that were scheduled to
mature in 2022 and 2024, respectively.
“Renewal and extension of these credit facilities aligns with
our financial strategy, which includes ensuring ample credit
capacity for our operating and commercial activities,” stated
Sharon Spurlin, Senior Vice President and Treasurer of Plains.
“Notably, the new commitment levels reflect the reduced capital
requirements of our business and the sizeable multi-year free cash
flow after distributions Plains is positioned to generate. We
sincerely value our long-term banking relationships and very much
appreciate the continued trust and support of our lenders.”
The new Facilities consist of a $1.35 billion Senior Unsecured
Revolving Credit Facility with an initial maturity in August 2026
and a $1.35 billion Senior Secured Hedged Inventory Facility with
an initial maturity in August 2024. The Facilities provide for one
or more one-year extensions and have accordion features which,
subject to receipt of incremental lender approval and other terms
and conditions, permit PAA to increase borrowing capacity to $2.1
billion and $1.9 billion, respectively. The Facilities
will be used for general corporate purposes and replace PAA’s
previous credit facilities that had aggregate borrowing capacities
of $1.6 billion and $1.4 billion and maturity dates in August 2024
and August 2022, respectively.
Funding for the Facilities was led by Bank of America, N.A. as
Administrative Agent, with Citibank, N.A., JPMorgan Chase Bank,
N.A. and Wells Fargo Bank, National Association also serving as
Co-Syndication Agents. Shearman & Sterling LLP acted as
legal counsel to Plains, and Holland & Knight LLP acted as
legal counsel to the bank syndication.
About Plains
PAA is a publicly traded master limited partnership that owns
and operates midstream energy infrastructure and provides logistics
services for crude oil, natural gas liquids (NGL), and natural gas.
PAA owns an extensive network of pipeline transportation,
terminalling, storage, and gathering assets in key crude oil and
NGL producing basins and transportation corridors and at major
market hubs in the United States and Canada. On average, PAA
handles more than 5 million barrels per day of crude oil and NGL in
its Transportation segment.
PAGP is a publicly traded entity that owns an indirect,
non-economic controlling general partner interest in PAA and an
indirect limited partner interest in PAA, one of the largest energy
infrastructure and logistics companies in North America.
PAA and PAGP are headquartered in Houston, Texas. For more
information, please visit www.plainsallamerican.com.
Contact: Brett
MagillDirector, Investor Relations(866) 809-1291
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