Plains All American Pipeline LP

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
0MM
Description

Agreed to merger in which PNG will become a wholly-owned subsidiary of PAA, through a unit-for-unit exchange.

Plains All American Pipeline LP To Merge With PAA Natural Gas Storage

Houston, Texas-based Plains All American Pipeline LP (NYSE: PAA) is moving forward with merger plans with PAA Natural Gas Storage LP (PNG).

The transaction will translate into approximately 14.7 million additional common units being issued by PAA, resulting in a merger in which PNG will become a wholly-owned subsidiary of PAA, through a unit-for-unit exchange.

In connection with the merger closing, the owners of PAA's general partner have agreed to reduce their incentive distribution rights under PAA's agreement of limited partnership by $12 million in 2014 and 2015, $10 million in 2016 and $5 million per year thereafter.

Under the terms of the merger agreement, PNG's public unitholders will receive 0.445 common units of PAA per PNG common unit surrendered, plus cash in lieu of any fractional common units of PAA otherwise issuable in the merger.

PAA owns 100% of the membership interests in the general partner of PNG, 100% of the outstanding subordinated units of PNG and about 46% of the 61.2 million outstanding common units of PNG.

The merger is expected to close in the latter half of the fourth quarter of 2013, and the previously announced quarterly distribution of $0.3575 per PNG common unit payable to holders on Nov. 1, 2013 will be paid on Nov. 14, 2013 as scheduled.