Plains All American to price first M&A bond of year

Plains All American Pipeline LP

13/01/2025 18:52

By Shankar Ramakrishnan
       Jan 13 (Reuters) - U.S. integrated midstream
infrastructure company Plains All American Pipeline  PAA.O  is
set on Monday to price a $1 billion investment-grade bond
offering, the year's first to finance an acquisition. 
        Proceeds will be used to fund an $800 million purchase
of Ironwood Midstream Energy Partners and hybrid shares from
EnCap Flatrock Midstream, Plains All American said 
    earlier this month
    . 
  
    The offering set the stage for what is expected to be a busy
year of bond financing for acquisitions.
    Syndicate bankers on average are expecting around $1.65
trillion of new investment-grade bonds in 2025, topping the $1.5
trillion in 2024, making this the second most prolific year for
such offerings, according to Informa Global Markets.
    Daniel Krieter, credit strategist at BMO Capital, said M&A
funding could account for about 14.5% to 15.5% of total
investment-grade bond volumes this year, up from about 13.5% in
2024.

    

 (Reporting by Shankar Ramakrishnan; Editing by Richard Chang)
 ((Shankar.Ramakrishnan@thomsonreuters.com; +1 2017590156))