Plains All American Pipeline completed a public offering of $700,000,000 of Series A junior subordinated notes and $800,000,000 of Series B notes. The securities give investors fixed initial rates but carry unsecured, subordinated claims, with rate adjustments beginning in 2031 for Series A and 2036 for Series B.

Key Highlights

  • The Series A notes carry a 6.750% interest rate, while Series B notes carry a 7.000% rate.
  • Both note series mature on December 15, 2056.
  • Interest payments begin on June 15, 2027, and are made on June 15 and December 15.

Plains All American Pipeline, L.P. (NASDAQ: PAA) completed an offering of $700,000,000 in Series A junior subordinated notes, giving the securities a 6.750% initial interest rate. The transaction also includes a separate Series B issuance with a 7.000% initial rate.

$700M Series A and $800M Series B Terms

The Series B notes represent $800,000,000 of aggregate principal. Both series mature on December 15, 2056, while interest payments are due on June 15 and December 15, beginning June 15, 2027. The Series A rate is subject to its first adjustment on December 15, 2031, and the Series B rate has its first adjustment on December 15, 2036.

Subordinated Structure Defines Investor Priority

The notes are unsecured obligations of PAA and rank behind the payment of its existing and future senior indebtedness. They rank equally with future unsecured obligations only where those obligations expressly receive equal payment priority. None of PAA’s subsidiaries guarantees the notes. PAA may redeem the securities during the applicable period before each first reset date and on later interest payment dates, subject to the indenture’s terms.