PAA Extends Hedged Inventory Credit Facility
Houston.-Plains All American Pipeline, L.P. (NYSE: PAA) today announced that it has closed on a new 364-day $500 million committed hedged inventory credit facility, which replaces a similar $525 million facility that was scheduled to mature on November 5, 2009. Borrowings under this facility will be primarily used to finance the purchase of hedged crude oil inventory for storage activities when market conditions warrant as well as for foreign import activities. The facility includes an accordion feature that enables the Partnership to increase the size of the facility to $1.2 billion, subject to obtaining additional lender commitments.
“The renewal of our hedged inventory facility was solidly supported by our existing bank group as well as several new relationship banks, with the number of participating institutions increasing from nine to twenty-three,” said Al Swanson, Senior Vice President and Chief Financial Officer for Plains All American Pipeline. “This renewal, combined with our proactive financing efforts, reinforces PAA’s solid financial positioning and enables us to maintain a high level of committed liquidity. We would like to publicly express our appreciation to these banks for their continued support of PAA.”
Funding for the facility was led by Banc of America Securities LLC and BNP Paribas, which are serving as Joint Book Runners. Bank of America, N.A. is serving as Administrative Agent, BNP Paribas is serving as Syndication Agent, and Societe Generale is serving as Documentation Agent.
Plains All American Pipeline, L.P. is a publicly traded master limited partnership engaged in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas related petroleum products. The Partnership is also engaged in the development and operation of natural gas storage facilities. The Partnership is headquartered in Houston, Texas.
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