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Plains GP Holdings, L.P. (NASDAQ:PAGP), a prominent player in the Oil, Gas & Consumable Fuels industry with annual revenues of $47.8 billion and a market capitalization of $4.3 billion, announced Monday that its consolidated subsidiaries, Plains All American Pipeline, L.P. and PAA Finance Corp., have completed a public offering of $1.25 billion in senior unsecured notes. According to InvestingPro analysis, the company maintains a "GOOD" financial health score, suggesting solid operational stability.
According to a statement based on a filing with the Securities and Exchange Commission, the offering consists of $700 million in 4.700% Senior Notes due 2031 and $550 million in 5.600% Senior Notes due 2036. The 2031 notes will mature on January 15, 2031, while the 2036 notes will mature on January 15, 2036. Interest on both series will be paid semi-annually on January 15 and July 15, beginning January 15, 2026. This debt offering adds to the company’s existing total debt of $8.87 billion, while maintaining its attractive 8.25% dividend yield for shareholders.
The notes are senior unsecured obligations of Plains All American Pipeline , L.P., ranking equally with its existing and future senior debt and senior to any future subordinated debt. The notes are effectively subordinated to all existing and future secured debt to the extent of the collateral securing such indebtedness.
The indenture governing the notes includes covenants that, under certain circumstances, restrict the company’s ability and that of certain subsidiaries to enter into sale and leaseback transactions, incur liens, merge or consolidate with another company, or transfer and sell assets. These covenants are subject to specified exceptions and qualifications.
Events of default under the indenture include defaults in payment of interest or principal, failure to comply with certain obligations under the indenture, payment defaults and accelerations with respect to other indebtedness of $150 million or more, and certain events of bankruptcy, insolvency, or reorganization.
The offering was made under a shelf registration statement filed with the SEC on September 6, 2024. The underwriting agreement, dated September 3, 2025, was entered into with BofA Securities, Inc., Barclays Capital Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, and Wells Fargo Securities, LLC, as representatives of the underwriters.
This information is based on a statement in a press release and the company’s SEC filing.
In other recent news, Plains GP Holdings LP reported its second-quarter 2025 earnings, which fell short of expectations. The company announced an earnings per share (EPS) of $0.15, significantly below the anticipated $0.33, representing a 54.55% negative surprise. Revenue also missed projections, coming in at $10.64 billion compared to the expected $12.87 billion, a 17.33% shortfall. In a separate development, the board of Plains GP Holdings approved changes to executive compensation, extending the expiration date of a long-term equity award for CEO Willie Chiang from October 2025 to October 2030. The vesting of these units is contingent upon achieving certain distributable cash flow per common unit thresholds. Additionally, Stifel reiterated its Buy rating for Plains GP Holdings with a price target of $23.00, maintaining a positive outlook on the company’s prospects. These developments provide a comprehensive view of the company’s recent activities.
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