Plains All American Pipeline completes $1.25 billion senior notes offering

Plains All American Pipeline, L.P. (NASDAQ:PAA), a midstream energy company with a market capitalization of $12.1 billion, announced Monday the completion of a public offering of $1.25 billion in senior notes, according to a statement based on a recent SEC filing. According to InvestingPro analysis, the company appears undervalued compared to its Fair Value, suggesting potential upside for investors.

The offering consists of $700 million in 4.700% senior notes due 2031 and $550 million in 5.600% senior notes due 2036. Interest on both series will be paid semiannually on January 15 and July 15, beginning January 15, 2026. The 2031 notes mature on January 15, 2031, while the 2036 notes mature on January 15, 2036. The company maintains a debt-to-equity ratio of 1.16 and generates substantial EBITDA of $2.66 billion in the last twelve months, demonstrating solid financial capacity to service its debt obligations.

The notes are senior unsecured obligations of Plains All American Pipeline and will rank equally with the company’s existing and future senior debt. They are subordinated to any secured debt to the extent of the value of the collateral. The company may redeem some or all of the notes before maturity at the prices set forth in the indenture.

The indenture governing the notes includes restrictions on certain activities by Plains All American Pipeline and some of its subsidiaries, such as entering into sale and leaseback transactions, incurring liens, merging or consolidating with another company, and transferring or selling assets. These covenants are subject to specific exceptions and qualifications.

Events of default under the notes include missed interest or principal payments, certain failures to comply with the indenture, payment defaults or accelerations on other debt exceeding $150 million, and certain bankruptcy or insolvency events. If an event of default occurs and is continuing, the trustee or holders of at least 25% in principal amount of the outstanding notes may declare the principal, premium, and accrued interest due and payable.

The notes were offered under the company’s shelf registration statement on Form S-3, filed with the SEC on September 6, 2024. The underwriting agreement for the offering was entered into on September 3, 2025, with BofA Securities, Barclays Capital, PNC Capital Markets, TD Securities (USA), and Wells Fargo Securities acting as representatives of the underwriters.

All information is based on a press release statement and the company’s Form 8-K filing with the Securities and Exchange Commission.

In other recent news, Plains All American Pipeline reported a steady financial performance for the second quarter of 2025, with an adjusted EBITDA of $672 million. This figure surpassed UBS’s estimate of $669.4 million and the consensus expectation of $670.5 million. The company is making strategic shifts, including selling its NGL business and increasing capital expenditure for growth projects. Plains All American also priced a $1.25 billion public offering of senior unsecured notes, consisting of $700 million in 4.70% notes due 2031 and $550 million in 5.60% notes due 2036. UBS and Stifel both reiterated their Buy ratings on Plains All American, with price targets set at $25.00 and $23.00, respectively. Additionally, the company announced executive compensation changes, extending a long-term incentive grant for CEO Willie Chiang and awarding retention incentives to other senior executives. These developments reflect Plains All American’s ongoing focus on enhancing unitholder value and strategic growth.

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