Plains All American Pipeline LP (NYSE: PAA) is raising cash. The LP grew the size of the offering and this discount appears to be about 2%. The oil and nat-gas transporter and storage facility runner plans to sell at least 4.2 million units at $62.60 per unit.
Plains has approximately 137 million units outstanding and they have increased just over 20% in the past year. The partnership said it expects to use the proceeds to pay down debt and to fund acquisitions. That does include its new announcement that it would purchase transport and oil gathering assets from Nexen Inc. (NYSE: NXY) for roughly $210 million.
Citi, BofA/Merrill Lynch, Morgan Stanley and Wells Fargo are listed as the joint book-runners of the offering. The syndicate also has an over-allotment option of up to 630,000 additional common units for a 30-day period.
Plains All American is seeing its units trade lower by 2.6% at $62.20 this morning. As far as how it compares in size for the near-$250 million offering, its market cap before the effects of this offering was listed as $8.7 billion.
JON C. OGG
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