Plains All American Pipeline has entered into a new USD 1.2 billion credit facility to provide additional liquidity. The facility closed on 9 December 2011 but has not been activated. According to the terms, PAA may activate the facility at any time over the next six months, resulting in a maturity 364 days from the activation date.
Al Swanson, Executive VP and CFO of Plains All American had this to say: “We appreciate the continued support from our banks. This liquidity facility enhances our flexibility in accessing the capital markets opportunistically, as we complete the financing for the five acquisitions totaling USD 2.3 billion announced on 1 December 2011. This facility also provides additional liquidity and financial flexibility with which to execute our other growth plans.”
DNB Bank served as Administrative Agent and Joint Bookrunner. Bank of America and JPMorgan Chase Bank served as Co-Syndication Agents and Joint Bookrunners. Mizuho Corporate Bank, UBS Loan Finance and Wells Fargo Bank are also participating in the facility.