Plains All American Pipeline and Plains GP Holdings renewed and extended its two credit facilities. The renewed and extended facilities have an aggregate initial borrowing capacity of $2.7 billion and initial maturities in 2024 and 2026, respectively. The renewed facilities replace the company’s previous facilities, which were scheduled to mature in 2022 and 2024, respectively.
Bank of America led the funding for the facilities as administrative agent, with Citibank, JPMorgan Chase Bank and Wells Fargo Bank serving as co-syndication agents.
“Renewal and extension of these credit facilities aligns with our financial strategy, which includes ensuring ample credit capacity for our operating and commercial activities,” Sharon Spurlin, senior vice president and treasurer of Plains, said. “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 $1.35 billion senior unsecured revolving credit facility with an initial maturity in August 2026 and a $1.35 billion senior secured hedged inventory facility with an initial maturity in August 2024. The facilities provide for one or more one-year extensions and have accordion features which, subject to receipt of incremental lender approval and other terms and conditions, permit Plains to increase borrowing capacity to $2.1 billion and $1.9 billion, respectively. Plains will use the facilities for general corporate purposes in addition to replacing the previous facilities, which had borrowing capacities of $1.6 billion and $1.4 billion, respectively.
Shearman & Sterling acted as legal counsel to Plains and Holland & Knight acted as legal counsel to the bank group.
