01—Abstract
Summary
Summary of the 8-K filed August 22, 2024. Cited figures are marked; the original filing is the authoritative source.
Plains All American Pipeline, L.P. filed this Current Report on Form 8-K dated August 22, 2024 to disclose two amendments to its existing credit facilities, both entered into on August 19, 2024.
The filing reports no earnings, operating results, or financial statements; its disclosure is limited to changes in the terms of its borrowing arrangements. Under the Revolving Credit Facility Amendment, the Partnership and Plains Midstream Canada ULC (PMC) amended their Credit Agreement dated August 20, 2021, with Bank of America, N.A. as administrative agent. The amendment replaces the Canadian dollar offered rate (CDOR) with rates based on the Canadian Overnight Repo Rate Average (CORRA), eliminates the requirement that lenders accept Canadian bankers' acceptances issued by PMC or other designated borrowers, and extends the maturity date from August 18, 2028 to August 17, 2029.
Under the Hedged Inventory Facility Amendment, Plains Marketing, L.P. (PMLP), a wholly-owned subsidiary of the Partnership, and PMC amended their Fourth Amended and Restated Credit Agreement dated August 20, 2021, with the Partnership as guarantor.
It makes the same CDOR-to-CORRA transition and bankers' acceptance change, and extends the maturity date from August 18, 2026 to August 18, 2027. The full amendments are filed as Exhibits 10.1 and 10.2.
02—Key points
Key Highlights
- Revolving credit facility maturity extended from August 18, 2028 to August 17, 2029.
- Hedged Inventory Facility maturity extended from August 18, 2026 to August 18, 2027.
- Both facilities replace the Canadian dollar offered rate (CDOR) with rates based on the Canadian Overnight Repo Rate Average (CORRA).
- Lenders are no longer required to accept Canadian bankers' acceptances issued by PMC or other designated borrowers under either facility.
- Both amendments were entered into on August 19, 2024, with Bank of America, N.A. as administrative agent.
- The filing is limited to credit agreement amendments; it contains no earnings or operating results.
03—Questions
Frequently Asked Questions
What did Plains All American Pipeline agree to change in its credit facilities?
The Partnership and Plains Midstream Canada ULC amended their revolving credit agreement, and Plains Marketing, L.P. and PMC amended the Hedged Inventory Facility. Both amendments replace CDOR with CORRA-based rates, remove the requirement that lenders accept Canadian bankers' acceptances, and extend the maturity dates.
When do the extended maturity dates now fall?
The revolving credit agreement now matures on August 17, 2029, up from August 18, 2028. The Hedged Inventory Facility now matures on August 18, 2027, up from August 18, 2026.
What is the significance of replacing CDOR with CORRA?
The filing states that CDOR was replaced with rates based on the Canadian Overnight Repo Rate Average (CORRA) under both amendments. It does not describe the reasons for the change or its financial effect.
Does this filing include the company's financial results?
No. The filing covers only Item 1.01 (material definitive agreements), Item 2.03 (direct financial obligations), and Item 9.01 (exhibits). The complete amendments are attached as Exhibits 10.1 and 10.2.
04—Continue