Plains All American prices $1.5B in junior notes to redeem preferred units
What's the deal? Plains All American PipelineDealroom has a profile for this one. Try Dealroom → has priced a $1.5 billion public offering of junior subordinated notes, split between 6.750% Series A notes and 7.000% Series B notes, both due 2056. The Houston-based pipeline operator, listed on Nasdaq as PAA, priced both series at 100% of face value. The offering is expected to close on September 14, 2026.
Where's the money going? PAA plans to use the net proceeds, along with cash on hand and commercial paper borrowings, to redeem all its outstanding Series A Preferred Units around September 14 and all Series B Preferred Units around October 9. The move swaps existing preferred equity for fresh subordinated debt.
How the notes work: Interest rates reset on December 15, 2031 for the Series A notes and December 15, 2036 for the Series B notes, then every five years after. Rates will track the then-applicable five-year US Treasury rate plus a spread, but cannot reset below their initial levels. PAA can redeem each series in the 90-day window before its first reset date.
Who ran it? J.P. Morgan SecuritiesDealroom has a profile for this one. Try Dealroom →, Citigroup Global MarketsDealroom has a profile for this one. Try Dealroom →, Mizuho Securities USADealroom has a profile for this one. Try Dealroom →, MUFG Securities AmericasDealroom has a profile for this one. Try Dealroom →, and Truist SecuritiesDealroom has a profile for this one. Try Dealroom → acted as joint book-running managers. The offering was made under an effective shelf registration statement previously filed with the US Securities and Exchange Commission.
The signal: At $1.5 billion, this ranks among the larger post-IPO debt raises in the US energy sector — above the 90th percentile across 792 comparable deals. Refinancing preferred units with long-dated notes lets PAA lock in fixed terms through 2056 while simplifying its capital structure.
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