PE firms back Plains All American Pipeline in $1.5B private placement
January 14, 2016
Plains All American Pipeline (NYSE: PAA) has received binding commitments for the purchase of roughly $1.5 billion of equity capital through a private placement; primary buyers include EnCap Investments, EnCap Flatrock Midstream, The Energy Minerals Group, Kayne Anderson Capital Advisors and First Reserve Advisors. The purchasers will acquire around 56 million units of a newly authorized series of 8% perpetual Series A convertible preferred units at $26.25 per unit. The transaction, scheduled to close before the end of January, follows a year of decline for PAA’s stock price. PAA, a master limited partnership, owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids, natural gas and refined products. The company's stock closed Wednesday at $19.85, down 9.6%.