Plains All American Pipeline LP (NYSE: PAA) has completed an underwritten public offering of 21,000,000 of its common units representing limited partner interests at $50 per common unit. The Partnership has also granted the underwriter a 30-day option to purchase up to 3,150,000 additional common units.
Total net proceeds from the offering, including our general partner’s proportionate capital contribution and after deducting the underwriter’s discounts and commissions and estimated offering expenses, were approximately $1.1 billion. The Partnership intends to use the net proceeds from this offering, including the proceeds from any exercise of the option to purchase additional common units, to repay outstanding borrowings under its commercial paper program and for general partnership purposes, including acquisitions, joint venture investments and other expansion capital expenditures. Amounts repaid under the Partnership’s commercial paper program may be reborrowed, as necessary, for general partnership purposes, including acquisitions, joint venture investments and other expansion capital expenditures.
Barclays Capital Inc. acted as sole underwriter of the offering.