Plains All American Announces Pricing of Public Offering of $1,500,000,000 of Junior Subordinated Notes and Intent to Redeem Series A and Series B Preferred Units

manilatimes.net · 2026-09-09

HOUSTON, Sept. 09, 2026 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) ('PAA”) today announced that it has priced an underwritten public offering (the 'Offering”) of $700,000,000 aggregate principal amount of PAA’s 6.750% Series A Junior Subordinated Notes due 2056 (the 'Series A Notes”) and $800,000,000 aggregate principal amount of PAA’s 7.000% Series B Junior Subordinated Notes due 2056 (the 'Series B Notes” and together with the Series A Notes, the 'Notes”), at a price to the public of 100.000% and 100.000% of their face value, respectively. The interest rates on the Series A Notes and the Series B Notes will be subject to adjustment on December 15, 2031 and December 15, 2036, respectively (the 'First Reset Date”), and on each five-year anniversary thereafter. The adjusted interest rates will be based on the then applicable Five-Year U. S. Treasury Rate plus a spread; provided that the interest rate during such periods will not reset below the initial interest rate of the applicable series of Notes. In addition, the Series A Notes and the Series B Notes will be subject to redemption by PAA during the 90-day period prior to the applicable First Reset Date and thereafter on any applicable interest payment date. The Offering is expected to close on September 14, 2026, subject to the satisfaction of customary closing conditions.

TickrTrends take: Plains All American Pipeline announced a public offering of junior subordinated notes totaling 1500000000 dollars, alongside plans to redeem existing Series A and Series B preferred units. Given TickrTrends' current overvalued assessment of PAA, investors focused on valuation should monitor how this debt issuance affects the company's leverage metrics and whether the redemption of preferred units signals management's confidence in equity value or reflects pressure to optimize capital structure. The financing activity in an energy infrastructure company trading at overvalued levels warrants attention to how debt servicing obligations impact future cash flow available to unitholders.

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