Plains GP Holdings, L.P. (NYSE: PAGP)
today announced that it has commenced an underwritten public offering of
34,000,000 of its Class A shares representing limited partner interests.
The underwriter intends to offer the shares from time to time for sale
in one or more transactions on the New York Stock Exchange, in the
over-the-counter market, through negotiated transactions or otherwise at
market prices prevailing at the time of sale, at prices related to
prevailing market prices or at negotiated prices. The Partnership also
intends to grant the underwriter a 30-day option to purchase up to
5,100,000 additional Class A shares.
Pursuant to the Omnibus Agreement dated as of November 15, 2016 by and
among the Partnership, PAA GP Holdings LLC, Plains AAP, L.P. ("AAP"),
PAA GP LLC and Plains All American Pipeline, L.P. (NYSE: PAA),
the Partnership has agreed to use the net proceeds from any public or
private offering and sale of Class A shares, including the current
offering, to purchase from AAP a number of AAP Class A units equal to
the number of Class A shares sold in such offering at a price equal to
the net proceeds from such offering. The Omnibus Agreement also provides
that immediately following such purchase and sale, AAP will use the net
proceeds it receives from such sale of AAP Class A units to the
Partnership to purchase from PAA an equivalent number of common units of
PAA.
PAA is expected to use the net proceeds it receives from the sale of
such common units to AAP to repay outstanding borrowings under its
senior unsecured revolving credit facilities and for general partnership
purposes, which may include, among other things, repayment of
indebtedness, acquisitions, capital expenditures and additions to
working capital.
Citigroup will act as sole book-running manager of the offering.
The Class A shares will be offered and sold pursuant to an effective
shelf registration statement on Form S-3 previously filed with the
Securities and Exchange Commission, and only by means of a prospectus
supplement and accompanying base prospectus. When available, copies of
the prospectus supplement and accompanying base prospectus relating to
the offering may be obtained from Citigroup as follows:
|
Citigroup Global Markets Inc.
c/o Broadridge Financial Solutions
1155 Long Island Avenue
Edgewood, New York 11717
Telephone: (800) 831-9146
|
|
This news release does not constitute an offer to sell or a solicitation
of an offer to buy the securities described herein, nor shall there be
any sale of these securities in any state or jurisdiction in which such
an offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction.
Plains GP Holdings 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. PAGP is
headquartered in Houston, Texas.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170223006629/en/
Investors:
Plains GP Holdings, L.P.
Ryan Smith,
866-809-1291
Director, Investor Relations