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Item 1.01
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Entry into a Material Definitive Agreement.
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On June 27, 2024, the registrant's consolidated subsidiaries, Plains All American Pipeline, L.P. ("PAA") and PAA Finance Corp. (together with PAA, the "Issuers") completed the public offering (the "Offering") of $650 million aggregate principal amount of the Issuers' 5.700% Senior Notes due 2034 (the "Notes").
The terms of the Notes are governed by the indenture (the "Base Indenture," and as amended and supplemented by the Supplemental Indenture (defined below), the "Indenture") dated as of September 25, 2002 by and among the Issuers and U.S. Bank Trust Company, National Association (as successor trustee), as trustee (the "Trustee"), as supplemented by the Thirty-Third Supplemental Indenture dated as of June 27, 2024 by and among the Issuers and the Trustee (the "Supplemental Indenture").
The Notes will mature on September 15, 2034. Interest is payable on the Notes on each March 15 and September 15, commencing on March 15, 2025. The Issuers may redeem some or all of the Notes at any time and from time to time prior to maturity at the redemption prices specified in the Indenture.
The Notes are PAA's senior unsecured obligations, will rank equally in right of payment with all of PAA's existing and future senior debt, and will rank senior in right of payment to all of PAA's future subordinated debt. The Notes will be effectively subordinated to all of PAA's existing and future secured debt to the extent of the value of the collateral securing such indebtedness.
In certain circumstances, the Indenture restricts PAA's ability and the ability of certain of its subsidiaries to: (i) enter into sale and leaseback transactions; (ii) incur liens; (iii) merge or consolidate with another company; and (iv) transfer and sell assets. These covenants are subject to a number of important exceptions and qualifications.
The Indenture contains customary events of default with respect to the Notes, including:
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default in any payment of interest on any Note of that series when due, continued for 60 days;
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default in the payment of principal of or premium, if any, on any Note of that series when due;
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failure by PAA to comply with its obligations under the Indenture, in certain cases subject to notice and grace periods;
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payment defaults and accelerations with respect to other indebtedness of PAA and its Subsidiaries (as defined in the Indenture) in the aggregate principal amount of $150.0 million or more;
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certain events of bankruptcy, insolvency or reorganization of PAA or, if and so long as the Notes of that series are guaranteed by a subsidiary guarantor, by such subsidiary guarantor; or
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if and so long as the Notes of that series are guaranteed by a subsidiary guarantor:
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the guarantee by such subsidiary guarantor ceases to be in full force and effect, except as otherwise provided in the Indenture;
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the guarantee by such subsidiary guarantor is declared null and void in a judicial proceeding; or
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such subsidiary guarantor denies or disaffirms its obligations under the Indenture or its guarantee.
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If an event of default under the Indenture occurs and is continuing, the Trustee or the holders of at least 25% in principal amount of the outstanding Notes may declare the principal of, premium, if any, and accrued and unpaid interest, if any, on the Notes to be due and payable, or, in the case of certain events of default relating to bankruptcy, insolvency or reorganization, those amounts will automatically become immediately due and payable.
Other material terms of the Notes, the Base Indenture and the Supplemental Indenture are described in the prospectus supplement, dated June 17, 2024. The foregoing descriptions of the Indenture and the Notes are qualified in their entirety by reference to such Indenture (including the form of Notes attached thereto). A copy of the Supplemental Indenture is filed as Exhibit 4.1 to PAA's Current Report on Form 8-K filed as of the date hereof and is incorporated herein by reference.
Plains GP Holdings LP