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Get filing alertsPlains All American refinances debt with new $2.7B credit facility, terminates prior agreements
Filed June 17, 2026 · Period ending June 12, 2026 · ~1 min read
Key Changes
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high
Entered new $2.7B unsecured revolving credit facility maturing June 2031, expandable to $4.0B, replacing two separate 2021 credit agreements and simplifying capital structure
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
medium
Repaid and terminated existing revolving credit agreement and hedged inventory facility on June 12, 2026, consolidating borrowing arrangements under single new facility
Item 1.02 — Termination of a Material Definitive Agreement verify on EDGAR → -
medium
New facility includes 5.0x debt-to-EBITDA covenant (5.5x during acquisitions), tested quarterly, providing lender protection while maintaining strategic flexibility
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
medium
Credit agreement prohibits distributions to unitholders if default occurs or would result, potentially impacting cash flows during covenant violations
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
low
Interest rates tied to Term SOFR or other benchmark rates plus margin based on credit rating, with maturity extendable by one-year increments subject to lender approval
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR →
Summary
Plains All American Pipeline executed a straightforward debt refinancing, replacing two separate 2021 credit facilities with a single $2.7 billion unsecured revolving credit agreement. The new facility matures in June 2031 and can expand to $4.0 billion, providing the partnership with enhanced borrowing capacity and a simplified capital structure.
The refinancing appears opportunistic rather than distressed—the company repaid existing obligations in full simultaneously with closing the new facility. For unitholders, the key consideration is the leverage covenant capping debt-to-EBITDA at 5.0x (5.5x during acquisitions).
While this provides reasonable operating flexibility, the distribution restriction clause means cash flows could be interrupted if the partnership violates covenants. The credit-rating-based pricing structure incentivizes maintaining strong credit metrics. Watch the partnership's quarterly leverage ratio in upcoming earnings reports—staying comfortably below the 5.0x threshold ensures uninterrupted distributions and signals financial health. The five-year maturity pushes refinancing risk well into the future.
Section-by-Section Diff
Event · Item 1.02 — Termination of a Material Definitive Agreement
Item 1.02 — Termination of a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
On June 12, 2026, in conjunction with the closing of the Revolving Credit Agreement, the Partnership, PCLP and PMLP, as applicable, repaid in full and terminated all outstanding obligations under (i) the Existing Revolving Credit Agreement and (ii) the Hedged Inventory Facility.
The company repaid all outstanding amounts and terminated two credit facilities: the Existing Revolving Credit Agreement and the Hedged Inventory Facility. This termination occurred simultaneously with the closing of a new Revolving Credit Agreement, indicating a refinancing transaction rather than financial distress.
Event · Item 1.01 — Entry into a Material Definitive Agreement
Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
The Revolving Credit Agreement replaces (a) the Partnership’s Credit Agreement dated as of August 20, 2021, as amended to date, among the Partnership and PCLP, as Borrowers; certain subsidiaries of the Partnership from time to time party thereto, as designated borrowers; Bank of America, N.A., as Administrative Agent and Swing Line Lender; Bank of America, N.A., Citibank, N.A., JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association, as L/C Issuers; and the other Lenders party thereto (as amended, the “Existing Revolving Credit Agreement”) and (b) PMLP’s Fourth Amended and Restated Credit Agreement dated as of August 20, 2021, as amended to date, among PMLP and PCLP, as Borrowers; the Partnership, as guarantor; Bank of America, N.A., as Administrative Agent and Swing Line Lender; Bank of America, N.A., Citibank, N.A., JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association, as L/C Issuers; and the other Lenders party thereto (as amended, the “Hedged Inventory Facility”).
The new facility consolidates and replaces two separate credit agreements from 2021: the Existing Revolving Credit Agreement and the Hedged Inventory Facility. This refinancing simplifies the Partnership's credit structure under a single agreement.
Added in current filing · verify on EDGAR →
In addition, the Revolving Credit Agreement prohibits the declaration or making of distributions on, or purchases or redemptions of, the Partnership’s equity interests if any Default or Event of Default has occurred and is continuing or, immediately after giving effect thereto, would result therefrom.
The facility prohibits distributions to unitholders if a default occurs or would result from the distribution. This protects lenders but could impact unitholder cash flows if covenant violations occur.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
Borrowings under the Revolving Credit Agreement accrue interest based, at the applicable Borrower’s election, on either Term SOFR, the Base Rate, the Canadian Term Rate or the Canadian Prime Rate, in each case, plus an applicable margin. Fees on issued Letters of Credit accrue at the applicable margin for Term SOFR Loans and Canadian Term Rate Loans, and a commitment fee accrues at an applicable margin. The applicable margin used in connection with interest rates and fees is based on the Partnership’s credit rating at the applicable time.
Interest rates are based on Term SOFR, Base Rate, Canadian Term Rate, or Canadian Prime Rate, plus a margin tied to the Partnership's credit rating. This structure provides borrowing flexibility across currencies while linking pricing to creditworthiness.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 17, 2026 · How we verify