Plains All American prices $1.5 billion offering, redeeming expensive preferred units

Plains All American Pipeline (PAA) priced a $1.5 billion public offering of junior subordinated notes.

The offering includes $700 million of Series A notes. These Series A notes carry a 6.750% interest rate. The company also priced $800 million of Series B notes. These Series B notes carry a 7.000% interest rate. Both series mature in 2056.

The notes priced at 100% of their face value. Plains All American will use the proceeds and cash on hand to redeem all outstanding Series A and Series B preferred units. This transaction replaces higher-cost preferred equity with long-term debt.

The company expects to redeem the Series A units around September 14, 2026. The company expects to redeem the Series B units around October 9, 2026.