Plains GP Holdings Launches IPO

Plains GP Holdings LP commenced its initial public offering Monday and will list its shares on the New York Stock Exchange under the symbol "PAGP".

Plains All American Pipeline LP, a Houston-based oil and gas transport company, is an affiliate of the limited partnership.

The initial public offering is 128 million Class A shares at an offering price of $22 and $25 per share. The limited partnership will also grant the underwriters a 30-day option to purchase up to an additional 19 million Class A shares.

The joint book-running managers of the initial offering are Barclays, Goldman, Sachs & Co., J.P. Morgan, BofA Merrill Lynch, Citigroup, UBS Investment Bank and Wells Fargo Securities.

Plains GP Holdings filed for a $1 billion initial public offering in July and announced plans to own a percentage of Plains AAP LP, a company that owns all of Plain's incentive distribution rights.

“Our cash flow will be entirely dependent upon the ability of PAA to make cash distributions to Plains AAP, and the ability of Plains AAP to make cash distributions to us,” the firm said in regulatory filings.

Plains All American, which made $37.8 billion in revenue last year, is a transportation, storage, terminalling and marketing of crude oil and moves over 3.5 million barrels per day of hydrocarbons. 


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