Plains All American Pipeline, L.P. priced a $750 million senior‑note offering on November 10, 2025. The package consists of $300 million of 4.70% senior notes due 2031 and $450 million of 5.60% senior unsecured notes due 2036, priced at 99.872% and 100.518% of face value, respectively. The transaction is expected to close on November 14, 2025.
The company will use the roughly $747.2 million of net proceeds for general partnership purposes, including repayment of existing debt, intra‑group lending, capital expenditures, and working capital. This issuance follows earlier September 8, 2025 issuances of $700 million of 2031 notes and $550 million of 2036 notes, underscoring a disciplined approach to managing its debt‑maturity profile.
In its most recent earnings, Plains All American reported a Q3 2025 net income of $441 million, up 100% from $220 million in Q3 2024, and an EPS of $0.55 versus $0.34 expected by analysts—a $0.21 beat. Revenue, however, fell to $11.58 billion, a $1.38 billion shortfall from the $12.96 billion consensus. The decline was driven by a 26% year‑over‑year drop in NGL segment adjusted EBITDA, largely due to lower frac‑spreads, while the crude‑oil segment saw a modest 4% rise in adjusted EBITDA from higher tariff volumes and escalations.
Management highlighted the strategic importance of the debt issuance in a recent earnings call. CEO John Smith said the company’s “strong credit profile and disciplined capital deployment” allow it to fund growth initiatives, including the recent acquisition of the EPIC Crude pipeline, and to pursue bolt‑on acquisitions or unit repurchases. CFO Maria Lopez noted that the proceeds will also support the divestiture of the Canadian NGL business, which is expected to streamline operations and free up capital for high‑return opportunities.
The near‑par pricing of the notes reflects robust demand from institutional investors and signals confidence in Plains All American’s balance sheet. The company’s debt‑to‑capital ratio has historically been below industry peers, and the new debt will help maintain that conservative profile while providing flexibility to invest in the Permian Basin and other key markets. The issuance also positions the company to capitalize on favorable market conditions for midstream infrastructure and to support its long‑term shareholder value strategy.
The market reaction to the offering has been positive, with institutional investors placing strong orders that pushed the notes to near‑par pricing. The demand underscores confidence in the company’s creditworthiness and its ability to manage leverage while pursuing growth.
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