PAGP Completes Public Offering of Class A Shares
March 01 2017 - 4:06PM
Business Wire
Plains GP Holdings, L.P. (NYSE: PAGP) today announced that it
has completed its previously announced underwritten public offering
of 48,300,000 of its Class A shares representing limited partner
interests, including 6,300,000 Class A shares issued pursuant to
the underwriters’ option to purchase additional Class A shares,
which the underwriters exercised in full.
Total net proceeds from the offering, after deducting the
underwriters’ discounts and commissions and estimated offering
expenses, were approximately $1.474 billion. Pursuant to the
Omnibus Agreement dated as of November 15, 2016 by and among PAGP,
PAA GP Holdings LLC, Plains AAP, L.P. (“AAP”), PAA GP LLC and
Plains All American Pipeline, L.P. (NYSE: PAA), PAGP 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 PAGP 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 facility and for
general partnership purposes, including acquisitions, joint venture
investments and other expansion capital expenditures. Amounts
repaid under PAA’s senior unsecured revolving credit facility may
be reborrowed to fund its ongoing expansion capital program, future
acquisitions and investments or for general partnership
purposes.
Citigroup acted as sole book-running manager of the
offering.
The Class A shares were 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. 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, L.P. is a publicly traded entity that owns
an indirect, non-economic controlling general partner interest in
PAA, one of the largest energy infrastructure and logistics
companies in North America. PAGP is headquartered in Houston,
Texas.
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version on businesswire.com: http://www.businesswire.com/news/home/20170301006485/en/
Investors:Plains GP Holdings, L.P.Ryan Smith, (866)
809-1291Director, Investor Relations
Plains GP (NYSE:PAGP)
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