HOUSTON, November 20 /CNW/ - Plains All American Pipeline, L.P.
(NYSE: PAA) today announced that it has extended the maturity of its senior
secured hedged inventory credit facility to November 2008 and increased the
maximum size of the facility from $1.2 billion to $1.4 billion. This facility
is an uncommitted facility used to finance the purchase of hedged crude oil
inventory for storage when market conditions warrant.
"Although the crude oil market is not currently in contango, this credit
facility constitutes a key component of our financial strategy and, consistent
with our proactive approach to financing, enhances our ability to capitalize
on potential changes in market structure," stated Al Swanson, Senior Vice
President Finance and Treasurer of Plains All American. "We would like to
thank our relationship banks for their continued support of the Partnership.
In addition to expanding and extending the contango facility, earlier this
year we extended the maturity of our $1.6 billion revolving credit facility to
July 2012. As a result of these actions and our June equity financing, PAA has
a strong balance sheet, $1.5 billion of undrawn committed liquidity at
September 30th and significant financial flexibility which we believe will
enable us both to execute on our organic projects and to act quickly upon
other growth opportunities."
Swanson also noted that last week S&P reaffirmed its BBB- corporate
credit rating on PAA and revised its outlook on PAA from negative to stable.
Plains All American Pipeline, L.P. is a publicly traded master limited
partnership engaged in the transportation, storage, terminalling and marketing
of crude oil, refined products and liquefied petroleum gas and other natural
gas related petroleum products. Through its 50% ownership in PAA/Vulcan Gas
Storage, LLC, the partnership is also engaged in the development and operation
of natural gas storage facilities. The Partnership is headquartered in
A credit rating is not a recommendation to buy, sell or hold securities,
and may be revised or withdrawn at any time.
For further information:
For further information: Plains All American Pipeline, L.P., Houston
Phil D. Kramer, 713-646-4560 or 800-564-3036 Executive Vice President and CFO
or Roy I. Lamoreaux, 713-646-4222 or 800-564-3036 Manager, Investor Relations