PAA Plains All American Pipeline

Plains All American Pipeline, L.P. to Refinance Bank Debt with New Unsecured Bank Deal HOUSTON, Oct. 27 /PRNewswire-FirstCall/ -- Plains All American Pipeline, L.P. today announced that it has launched a bank credit transaction designed to replace its existing senior secured credit facilities with new senior unsecured credit facilities totaling $750 million and a $200 million uncommitted facility for the purchase of hedged crude oil. The $750 million of new facilities will be comprised of: -- a four-year, $425 million U.S. Revolving Credit Facility; -- a 364-day, $170 million Canadian Revolving Credit Facility with a five-year term-out option; -- a four-year, $30 million Canadian Working Capital Revolving Credit Facility; and -- a 364-day, $125 million Revolving Credit Facility. All of the facilities with the exception of the $200 million Hedged Inventory Facility will be unsecured. The $200 million Hedged Inventory Facility will be an uncommitted facility, which the Partnership anticipates using to build inventory during periods when the market is favorable. Borrowings under the Hedged Inventory Facility will be secured by the inventory purchased under the facility and the associated accounts receivable, and will be repaid from the proceeds from the sale of such inventory. After closing, the Partnership's capital structure will consist of $200 million of senior unsecured notes due 2012 and debt outstanding under the $750 million of senior unsecured bank credit facilities. Closing is contingent upon, among other things, the negotiation of mutually acceptable documentation. Fleet Securities, Inc. is acting as Sole Arranger and Fleet National Bank is acting as Administrative Agent for the transaction. In addition to Fleet, Bank One, NA and Wachovia Bank, National Association have committed to participate in the unsecured facilities as Tier 1 lenders. The Partnership expects to close the transaction during the fourth quarter. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, abrupt or severe production declines or production interruptions in outer continental shelf production located offshore California and transported on the All American Pipeline, declines in volumes shipped on the Basin Pipeline and our other pipelines by third party shippers, the availability of adequate supplies of and demand for crude oil in the areas in which we operate, the effects of competition, the success of our risk management activities, the impact of crude oil price fluctuations, the availability (or lack thereof) of acquisition opportunities on terms favorable to the Partnership, successful integration and future performance of assets acquired, continued credit worthiness of, and performance by, our counterparties, successful third party drilling efforts in areas in which we operate pipelines or gather crude oil, our levels of indebtedness and ability to receive credit on satisfactory terms, regulatory changes, unanticipated shortages or cost increases in power supplies, materials and skilled labor, weather interference with business operations or project construction, the currency exchange rate of the Canadian dollar, environmental liabilities that are not covered by an indemnity or insurance, fluctuation in the debt and equity capital markets, and other factors and uncertainties inherent in the marketing, transportation, terminalling, gathering and storage of crude oil and liquefied petroleum gas ("LPG") discussed in the Partnership's filings with the Securities and Exchange Commission. Plains All American Pipeline, L.P. is engaged in interstate and intrastate crude oil transportation, terminalling and storage, as well as crude oil and LPG gathering and marketing activities, primarily in Texas, California, Oklahoma and Louisiana and the Canadian Provinces of Alberta and Saskatchewan. The Partnership's common units are traded on the New York Stock Exchange under the symbol "PAA." The Partnership is headquartered in Houston, Texas. DATASOURCE: Plains All American Pipeline, L.P. CONTACT: Phillip D. Kramer, Executive VP and CFO, +1-713-646-4560, or A. Patrick Diamond, Manager, Special Projects, +1-713-646-4487, both of Plains All American Pipeline, L.P., +1-800-564-3036 Web site: http://www.paalp.com/

Copyright