Plains All American Pipeline Offers $1.5 Billion in Junior Subordinated Notes
News related to:Plains All American Pipeline, L.P · 2 min read
HOUSTON, Sept. 09, 2026 /CourierPR/ -- Plains All American Pipeline, L.P. has announced a significant financial move, pricing a public offering of $1.5 billion in junior subordinated notes. The offering, split into two series, Series A and Series B Junior Subordinated Notes due in 2056, will each carry an initial interest rate of 6.750% and 7.000%, respectively.
The pipeline company is using this financial maneuver to fund the redemption of its outstanding Series A and Series B Preferred Units. The preferred units will be repurchased on or about September 14, 2026, and October 9, 2026, respectively, with all accrued and unpaid distributions up to the redemption date included.
The offering is expected to close on September 14, 2026, subject to customary closing conditions. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., and Truist Securities, Inc. are acting as joint book-running managers for the Offering.
Plains All American Pipeline’s use of this strategy aims to streamline its capital structure, aligning with its ongoing efforts to enhance operational efficiency and financial flexibility. The company plans to use the net proceeds from the Offering, along with existing cash and commercial paper borrowings, to execute this redemption plan.
The interest rates on both the Series A and Series B Notes are subject to periodic adjustment, starting on December 15, 2031, for the Series A Notes, and December 15, 2036, for the Series B Notes. These adjustments will be based on the Five-Year U.S. Treasury Rate plus a specified spread. The adjusted rates will not fall below the initial interest rate of the respective series.
Plains All American Pipeline has indicated its intention to redeem the preferred units during the 90-day period prior to the applicable reset date and thereafter on any applicable interest payment date. This move underscores the company’s commitment to optimizing its financial structure and ensuring long-term stability.
The press release also notes that this offering does not constitute a notice of redemption with respect to the Series A Preferred Units or the Series B Preferred Units, emphasizing the importance of adhering to the specific terms and conditions outlined in the offering documentation.
In summary, Plains All American Pipeline, L.P. is undertaking a strategic financial restructuring by issuing junior subordinated notes, which will be used to fund the redemption of its preferred units. This action is part of a broader plan to enhance the company’s financial health and operational resilience in the energy infrastructure sector.