Plains All American Renews and Extends Credit Facilities
Plains All American Pipeline (PAA) announced the renewal and extension of its two credit facilities, raising the initial borrowing capacity to $2.7 billion. The new facilities comprise a $1.35 billion Senior Unsecured Revolving Credit Facility maturing in 2026 and a $1.35 billion Senior Secured Hedged Inventory Facility maturing in 2024. This move aligns with PAA's financial strategy of ensuring ample credit capacity for operations and reflects reduced capital requirements. The previous facilities had lower borrowing capacities of $1.6 billion and $1.4 billion.
- Increased initial borrowing capacity to $2.7 billion, enhancing financial flexibility.
- New facilities reflect reduced capital requirements, indicating efficient cash flow management.
- None.
HOUSTON, Aug. 26, 2021 (GLOBE NEWSWIRE) -- 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
“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
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 Magill
Director, Investor Relations
(866) 809-1291
FAQ
What is Plains All American Pipeline (PAA) announcing on August 26, 2021?
What are the new maturities for Plains All American Pipeline's credit facilities?
How much is Plains All American Pipeline's Senior Unsecured Revolving Credit Facility?
What does the renewal of credit facilities indicate for PAA's financial strategy?
