Business Context and Reporting Period
This Form 8-K is a current report filed by Plains GP Holdings, L.P. on October 12, 2017, regarding an event that occurred on October 10, 2017. The filing concerns the registrant's consolidated subsidiary, Plains All American Pipeline, L.P. ("PAA").
Key Financial Metrics and Capital Structure
The filing details a specific capital raising event rather than providing comprehensive financial statements for a reporting period.
- Security Issued: 800,000 6.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units.
- Offering Price: $1,000 per Series B Preferred Unit.
- Total Proceeds: $800,000,000 (calculated from 800,000 units at $1,000 each).
- Interest Rate: 6.125% (Fixed-to-Floating).
The filing text does not provide clear values for revenue, net profit, operating cash flow, margins, total debt, or liquidity ratios for the registrant or the subsidiary.
Material Changes
On October 10, 2017, PAA closed its previously announced underwritten public offering of the Series B Preferred Units. Concurrently, PAA GP LLC executed the Seventh Amended and Restated Agreement of Limited Partnership of PAA to authorize and establish the rights, preferences, and privileges of these new units.
Guidance, Outlook, and Risks
The filing does not contain management commentary, forward-looking guidance, or specific risk factors related to future operations. It references the "PAA Signing 8-K" filed on October 6, 2017, for a summary of the rights and privileges of the Series B Preferred Units, and incorporates the full text of the Seventh Amended and Restated Agreement of Limited Partnership by reference.
Investor Verification Checklist
- Verify the full terms of the Seventh Amended and Restated Agreement of Limited Partnership of PAA (Exhibit 3.1).
- Review the "PAA Signing 8-K" filed on October 6, 2017, for detailed rights and privileges of the Series B Preferred Units.
- Confirm the use of proceeds from the $800 million offering in PAA's subsequent financial reports.
- Monitor the floating rate mechanism for the Series B Preferred Units post-fixed period.