Attached files
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8-K - FORM 8-K - PLAINS ALL AMERICAN PIPELINE LP | h78739e8vk.htm |
EX-5.1 - EX-5.1 - PLAINS ALL AMERICAN PIPELINE LP | h78739exv5w1.htm |
EX-4.1 - EX-4.1 - PLAINS ALL AMERICAN PIPELINE LP | h78739exv4w1.htm |
Exhibit 1.1
Execution Version
Execution Version
PLAINS ALL AMERICAN PIPELINE, L.P.
PAA FINANCE CORP.
PAA FINANCE CORP.
$600,000,000 5.00% Senior Notes due 2021
UNDERWRITING AGREEMENT
January 5, 2011
Wells Fargo Securities, LLC
J.P. Morgan Securities LLC
SunTrust Robinson Humphrey, Inc.
DnB NOR Markets, Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
BMO Capital Markets Corp.
Daiwa Capital Markets America Inc
ING Financial Markets LLC
Mizuho Securities USA Inc.
Morgan Stanley & Co. Incorporated
Scotia Capital (USA) Inc.
SG Americas Securities, LLC
U.S. Bancorp Investments, Inc.
J.P. Morgan Securities LLC
SunTrust Robinson Humphrey, Inc.
DnB NOR Markets, Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
BMO Capital Markets Corp.
Daiwa Capital Markets America Inc
ING Financial Markets LLC
Mizuho Securities USA Inc.
Morgan Stanley & Co. Incorporated
Scotia Capital (USA) Inc.
SG Americas Securities, LLC
U.S. Bancorp Investments, Inc.
c/o Wells Fargo Securities, LLC
301 S. College Street
Charlotte, NC 28288
301 S. College Street
Charlotte, NC 28288
Ladies and Gentlemen:
Plains All American Pipeline, L.P., a Delaware limited partnership (the Partnership), and
PAA Finance Corp., a Delaware corporation (PAA Finance and, together with the Partnership, the
Issuers), propose to issue and sell to the several underwriters named in Schedule I
hereto (the Underwriters), for whom Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and
SunTrust Robinson Humphrey, Inc. are acting as the representatives (the Representatives),
$600,000,000 aggregate principal amount of 5.00% Senior Notes due February 1, 2021 (the Notes).
The Notes are to be issued under an indenture dated as of September 25, 2002 (the Base
Indenture), among the Issuers and U.S. Bank National Association, as successor trustee (the
Trustee), as amended by the Nineteenth Supplemental Indenture, to be dated as of January 14,
2011, among the Issuers, the Subsidiary Guarantors (as defined herein) and the Trustee (the Base
Indenture, as so amended, the Indenture), and will be guaranteed on an unsecured basis by each of
the Subsidiary Guarantors (the Guarantees).
PAA GP LLC, a Delaware limited liability company (the General Partner), is the general
partner of the Partnership. Plains AAP, L.P., a Delaware limited partnership (Plains AAP), owns
a 100% membership interest in the General Partner. Plains All American GP LLC, a Delaware limited
liability company (GP LLC and, collectively with the General Partner and Plains AAP, the GP
Entities), is the general partner of Plains AAP.
The subsidiaries of the Partnership listed on Schedule III attached hereto are
referred to herein as the Domestic Subsidiary Guarantors. The subsidiaries of the Partnership
listed on Schedule IV attached hereto are referred to herein as the Canadian Subsidiary
Guarantors. The subsidiaries of the Partnership listed on Schedule V attached hereto are
referred to herein as the PNG Entities. The subsidiaries of the Partnership listed on
Schedule VI attached hereto are referred to herein as the Other Subsidiaries. The
Domestic Subsidiary Guarantors and the Canadian Subsidiary Guarantors are collectively referred to
herein as the Subsidiary Guarantors. The PNG Entities and the Other Subsidiaries are collectively
referred to herein as the Non-Guarantor Subsidiaries. The Non-Guarantor Subsidiaries, the
Subsidiary Guarantors and PAA Finance are collectively referred to herein as the Subsidiaries.
The Issuers and the Subsidiary Guarantors are collectively referred to herein as the Plains
Parties. The Plains Parties, the GP Entities and the Non-Guarantor Subsidiaries are collectively
referred to herein as the Plains Entities.
This is to confirm the agreement among the Plains Parties and the Underwriters concerning the
several purchases of the Notes by the Underwriters.
1. Representations and Warranties of the Plains Parties. The Plains Parties, jointly and
severally, represent and warrant to the Underwriters that:
(a) Registration. A registration statement on Form S-3 relating to the Notes (File No.
333-162475) (i) has been prepared by the Issuers in conformity with the requirements of the
Securities Act of 1933, as amended (the Securities Act), and the rules and regulations
(the Rules and Regulations) of the Securities and Exchange Commission (the Commission)
thereunder; (ii) has been filed with the Commission under the Securities Act; and (iii) is
effective under the Securities Act. Copies of such registration statement and any amendment
thereto have been delivered by the Issuers to the Representatives. As used in this
Agreement:
(i) Applicable Time means 2:30 p.m., New York City time, on January 5, 2011,
which the Underwriters have informed the Issuers and their counsel is a time prior
to the first sale of the Notes;
(ii) Base Prospectus means the base prospectus included in the Registration
Statement at the Applicable Time.
(iii) Effective Date means any date as of which any part of such registration
statement relating to the Notes became, or is deemed to have become, effective under
the Securities Act in accordance with the Rules and Regulations;
(iv) Issuer Free Writing Prospectus means each free writing prospectus (as
defined in Rule 405 of the Rules and Regulations) or issuer free
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writing prospectus (as defined in Rule 433 of the Rules and Regulations)
prepared by or on behalf of the Issuers or used or referred to by the Issuers in
connection with the offering of the Notes;
(v) Preliminary Prospectus means any preliminary prospectus relating to the
Notes included in such registration statement or filed with the Commission pursuant
to Rule 424(b) of the Rules and Regulations, including the Base Prospectus and any
preliminary prospectus supplement thereto relating to the Notes;
(vi) Pricing Disclosure Package means, as of the Applicable Time, (A) the
most recent Preliminary Prospectus, (B) the Issuer Free Writing Prospectus attached
as Schedule II hereto, and (C) each other Issuer Free Writing Prospectuses
filed or used by the Partnership on or before the Applicable Time identified on
Schedule II hereto, other than a road show that is an Issuer Free Writing
Prospectus under Rule 433 of the Rules and Regulations;
(vii) Prospectus means the final prospectus relating to the Notes, including
the Base Prospectus and any prospectus supplement thereto relating to the Notes, as
filed with the Commission pursuant to Rule 424(b) of the Rules and Regulations; and
(viii) Registration Statement means the registration statement on Form S-3
(File No. 333-162475), as amended as of the Effective Date, including any
Preliminary Prospectus or the Prospectus and all exhibits to such registration
statement.
Any reference to the Registration Statement, any Preliminary Prospectus, the Pricing
Disclosure Package or the Prospectus shall be deemed to refer to and include any documents
incorporated by reference therein pursuant to Form S-3 under the Securities Act as of the date of
such Registration Statement, Preliminary Prospectus or Prospectus, as the case may be, or in the
case of the Pricing Disclosure Package, as of the Applicable Time. Any reference to the most
recent Preliminary Prospectus shall be deemed to refer to the latest Preliminary Prospectus
included in the Registration Statement or filed pursuant to Rule 424(b) of the Rules and
Regulations prior to or on the date hereof (including, for purposes hereof, any documents
incorporated by reference therein prior to or on the date hereof). Any reference to any amendment
or supplement to any Preliminary Prospectus or the Prospectus shall be deemed to refer to and
include any document filed under the Securities Exchange Act of 1934, as amended (the Exchange
Act), after the date of such Preliminary Prospectus or the Prospectus, as the case may be, and
incorporated by reference in such Preliminary Prospectus or the Prospectus, as the case may be.
Any reference to any amendment to the Registration Statement shall be deemed to include any
periodic report of the Partnership filed with the Commission pursuant to Section 13(a) or 15(d) of
the Exchange Act after the Effective Date that is incorporated by reference in the Registration
Statement. As used herein, the term Incorporated Documents means the documents that at the time
are incorporated by reference in the Registration Statement, the Preliminary Prospectus or the
Prospectus or any amendment or supplement thereto. The Commission has not issued any order
preventing or suspending the use of any Preliminary
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Prospectus or the Prospectus or suspending the effectiveness of the Registration Statement,
and no proceeding for such purpose has been instituted or, to the Plains Parties knowledge,
threatened by the Commission. The Commission has not notified the Issuers of any objection to the
use of the form of the Registration Statement.
(b) Form of Documents. The Registration Statement conformed in all material respects on the
Effective Date and on the Delivery Date (as defined herein) will conform, and any amendment to the
Registration Statement filed after the date hereof will conform in all material respects when
filed, to the applicable requirements of the Securities Act and the Rules and Regulations. The
most recent Preliminary Prospectus conformed, and the Prospectus will conform, in all material
respects when filed with the Commission pursuant to Rule 424(b) and on the Delivery Date to the
requirements of the Securities Act and the Rules and Regulations. The Incorporated Documents
conformed and will conform, when filed with the Commission, in all material respects to the
requirements of the Exchange Act or the Securities Act, as applicable, and the rules and
regulations of the Commission thereunder. The Registration Statement and the Prospectus conform in
all material respects to the requirements applicable to them under the Trust Indenture Act of 1939,
as amended (the Trust Indenture Act).
(c) No Material Misstatements or Omissions in Registration Statement. The Registration
Statement did not, as of its most recent Effective Date, contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading; provided that no representation or warranty is made as
to information contained in or omitted from the Registration Statement in reliance upon and in
conformity with written information furnished to the Issuers through the Representatives by or on
behalf of any Underwriter specifically for inclusion therein, which information is specified in
Section 12.
(d) No Material Misstatements or Omissions in Prospectus. The Prospectus will not, as of its
date and on the Delivery Date, include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that no representation or warranty is
made as to information contained in or omitted from the Prospectus in reliance upon and in
conformity with written information furnished to the Issuers through the Representatives by or on
behalf of any Underwriter specifically for inclusion therein, which information is specified in
Section 12.
(e) No Material Misstatements or Omissions in Documents Incorporated by Reference. The
Incorporated Documents, when filed with the Commission, did not and will not include an untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading.
(f) No Material Misstatements or Omissions in Pricing Disclosure Package. The Pricing
Disclosure Package did not, as of the Applicable Time, include an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided that no
representation or warranty is made as to information contained in or omitted from the
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Pricing Disclosure Package in reliance upon and in conformity with written information
furnished to the Issuers through the Representatives by or on behalf of any Underwriter
specifically for inclusion therein, which information is specified in Section 12.
(g) No Material Misstatements or Omissions in Issuer Free Writing Prospectus and Pricing
Disclosure Package. Each Issuer Free Writing Prospectus (including, without limitation, any road
show that is a free writing prospectus under Rule 433 of the Rules and Regulations), when
considered together with the Pricing Disclosure Package as of the Applicable Time, did not include
an untrue statement of a material fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; provided, that no representation or warranty is made as to information
contained in or omitted from such Issuer Free Writing Prospectus in reliance upon and in conformity
with written information furnished to the Issuers through the Representatives by or on behalf of
any Underwriter specifically for inclusion therein, which information is specified in Section 12.
(h) Issuer Free Writing Prospectuses Conform to the Requirements of the Securities Act. Each
Issuer Free Writing Prospectus conformed or will conform in all material respects to the
requirements of the Securities Act and the Rules and Regulations on the date of first use, and the
Issuers have complied with any filing requirements applicable to such Issuer Free Writing
Prospectus pursuant to the Rules and Regulations. The Issuers have not made any offer relating to
the Notes that would constitute an Issuer Free Writing Prospectus without the prior written consent
of the Representatives. The Issuers have retained in accordance with the Rules and Regulations all
Issuer Free Writing Prospectuses that were not required to be filed pursuant to the Rules and
Regulations. The Issuers have taken all actions necessary so that any road show (as defined in
Rule 433 of the Rules and Regulations) in connection with the offering of the Notes will not be
required to be filed pursuant to the Rules and Regulations.
(i) Well-Known Seasoned Issuer and Not an Ineligible Issuer. Each of the Plains Parties is a
well-known seasoned issuer (as defined in Rule 405 under the Securities Act). At the earliest
time after the initial filing of the Registration Statement that the Issuers or another offering
participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the Securities Act)
of the Notes, none of the Plains Parties was an ineligible issuer, as defined in Rule 405 under
the Securities Act.
(j) Formation and Qualification of Certain Entities. Each of the Plains Parties, the GP
Entities and the PNG Entities has been duly formed or incorporated and is validly existing in good
standing as a limited partnership, limited liability company, corporation or unlimited liability
company under the laws of its respective jurisdiction of formation or incorporation with full
corporate, partnership, limited liability company or unlimited liability company power and
authority, as the case may be, to own or lease its properties and to conduct its business, in each
case in all material respects. Each of the Plains Parties, the GP Entities and the PNG Entities is
duly registered or qualified as a foreign corporation, limited partnership, limited liability
company or unlimited liability company, as the case may be, for the transaction of business under
the laws of each jurisdiction (as set forth on Exhibit A to this Agreement) in which the
character of the business conducted by it or the nature or location of the properties owned or
leased by it makes such registration or qualification necessary, except where the failure
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so to register or qualify would not reasonably be expected to have a material adverse effect
upon the condition (financial or other), business, prospects, properties, net worth or results of
operations of the Plains Entities taken as a whole (a Material Adverse Effect).
(k) General Partners. Each Plains Entity that serves as a general partner of another Plains
Entity has full corporate or limited liability company power and authority, as the case may be, to
serve as general partner of such Plains Entity, in each case in all material respects, as disclosed
in the Pricing Disclosure Package and the Prospectus.
(l) Ownership of Interests in the Partnership, the General Partner and Plains AAP. The GP
Entities hold the general partner and membership interests described in the Registration Statement;
all of such interests have been duly authorized and validly issued in accordance with their
respective limited partnership or limited liability company agreement, as applicable, and all the
membership interests in the General Partner are fully paid (to the extent required under the
Limited Liability Company Agreement of the General Partner (as the same may be amended or restated
prior to the Delivery Date, such agreement being referred to herein as the General Partner LLC
Agreement) and nonassessable (except as such nonassessability may be affected by Sections 18-607
and 18-804 of the Delaware Limited Liability Company Act (the Delaware LLC Act)); and such
general partner and membership interests held by the GP Entities are owned free and clear of all
liens, encumbrances, security interests, equities, charges or claims (Liens), except as disclosed
in the Pricing Disclosure Package and the Prospectus and except such as would not reasonably be
expected to result in a change of control of the Partnership or reasonably be expected to
materially adversely affect the ability of the Plains Entities considered as a whole to conduct
their businesses as currently conducted and as contemplated by the Pricing Disclosure Package and
the Prospectus to be conducted.
(m) Ownership of Subsidiaries. All of the outstanding shares of capital stock or other equity
interests of each Subsidiary (a) have been duly authorized and validly issued (in accordance with
the agreement or certificate of limited partnership, limited liability company agreement,
certificate of formation, certificate or articles of incorporation, bylaws or other similar
organizational documents (in each case as in effect on the date hereof and as the same may be
amended or restated prior to the Delivery Date) (the Organizational Documents) of such
Subsidiary), are fully paid (in the case of an interest in a limited partnership or limited
liability company, to the extent required under the Organizational Documents of such Subsidiary)
and nonassessable (except (i) in the case of an interest in a Delaware limited partnership or
Delaware limited liability company, as such nonassessability may be affected by Sections 17-607 and
17-804 of the Delaware Revised Uniform Limited Partnership Act (the Delaware LP Act) or Sections
18-607 and 18-804 of the Delaware LLC Act, as applicable, (ii) in the case of an interest in a
limited partnership or limited liability company formed under the laws of another domestic state,
as such nonassessability may be affected by similar provisions of such states limited partnership
or limited liability company statute, as applicable, and (iii) in the case of an interest in an
entity formed under the laws of a foreign jurisdiction, as such nonassessability may be affected by
similar provisions of such jurisdictions corporate, partnership or limited liability company
statute, if any, as applicable) and (b) except for (i) a portion of the limited partner interest in
PAA Natural Gas Storage, L.P. (PNG) and (ii) a portion of the membership interest in SLC Pipeline
LLC owned by an affiliate of Holly Energy
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Partners-Operating, L.P., are owned, directly or indirectly, by the Partnership, free and
clear of all Liens.
(n) Majority Owned Subsidiaries. The Partnership has no direct or indirect majority owned
subsidiaries other than (i) those disclosed on Exhibit 21.1 to the Partnerships Annual Report on
Form 10-K filed with the Commission on February 26, 2010 (the Form 10-K) and (ii) those who would
not, considered in the aggregate as a single subsidiary, constitute a significant subsidiary (as
defined in Rule 1-02(w) of Regulation S-X) as of the year end covered by the Form 10-K. The
Issuers have no material independent assets or operations and the Guarantees of the Subsidiary
Guarantors are full and unconditional and joint and several.
(o) No Registration Rights. The offering and sale of the Notes as contemplated by this
Agreement do not give rise to any rights for or relating to the registration of any other
securities of the Issuers, except such rights as have been waived or satisfied.
(p) Conformity to Description of Notes. The Notes, when issued and delivered against payment
therefor as provided herein and in the Indenture, the Guarantees and the Indenture will conform in
all material respects to the descriptions thereof contained in the Pricing Disclosure Package and
the Prospectus (and any amendment or supplement thereto).
(q) Authority. Each of the Issuers has all requisite power and authority to issue, sell and
deliver the Notes, and each of the Subsidiary Guarantors has all requisite power and authority to
issue and deliver the Guarantees, in accordance with and upon the terms and conditions set forth in
this Agreement, their respective Organizational Documents, the Indenture, the Registration
Statement, the Pricing Disclosure Package and the Prospectus. All action required to be taken by
the Plains Parties or any of their stockholders, partners or members for (i) the due and proper
authorization, execution and delivery of this Agreement and the Indenture, (ii) the authorization,
issuance, sale and delivery of the Notes and the Guarantees and (iii) the consummation of the
transactions contemplated hereby and thereby shall have been duly and validly taken.
(r) Authorization, Execution and Delivery of this Agreement. This Agreement has been duly and
validly authorized, executed and delivered by or on behalf of the Plains Parties.
(s) Enforceability of the Indenture. The execution and delivery of, and the performance by
each of the Plains Parties of their respective obligations under, the Indenture have been duly and
validly authorized by each of the Plains Parties that are parties thereto; the Indenture has been
duly qualified under the Trust Indenture Act and, assuming due authorization, execution and
delivery of the Base Indenture and the Nineteenth Supplemental Indenture thereto by the Trustee,
when such Nineteenth Supplemental Indenture is executed and delivered by each of the Plains Parties
that are parties thereto, will constitute the valid and legally binding agreement of each of the
Plains Parties that are parties thereto, enforceable against each of the Plains Parties that are
parties thereto in accordance with its terms; provided that the enforceability thereof may
be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar
laws relating to or affecting creditors rights generally and by general principles of equity
(regardless of whether such enforceability is considered in a
7
proceeding in equity or at law) and except as rights to indemnity and contribution thereunder
may be limited by federal or state securities laws.
(t) Valid Issuance of the Notes. The Notes have been duly authorized, and, when executed and
authenticated in accordance with the provisions of the Indenture and delivered to and paid for by
the Underwriters, will have been duly executed and delivered by each of the Issuers and will
constitute the valid and legally binding obligations of the Issuers, enforceable against the
Issuers in accordance with their terms and entitled to the benefits of the Indenture;
provided that the enforceability thereof may be limited by bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws relating to or affecting
creditors rights generally and by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law) and except as rights to indemnity
and contribution thereunder may be limited by federal or state securities laws.
(u) Valid Issuance of the Guarantees. The Guarantees have been duly authorized by each of the
Subsidiary Guarantors and, when the Notes have been duly executed, authenticated, issued and
delivered as provided in the Indenture and paid for as provided herein, will be valid and legally
binding obligations of each of the Subsidiary Guarantors, enforceable against each of the
Subsidiary Guarantors in accordance with their terms and will be entitled to the benefits of the
Indenture; provided that the enforceability thereof may be limited by bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws relating to or
affecting creditors rights generally and by general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law) and except as rights to
indemnity and contribution thereunder may be limited by federal or state securities laws.
(v) Authorization, Execution and Enforceability of the Operating Agreements. The partnership
agreement or limited liability company agreement, as applicable, of each of the Plains Parties and
the GP Entities has been duly authorized, executed and delivered by the parties thereto and is a
valid and legally binding agreement of such parties thereto, enforceable against the parties
thereto in accordance with their respective terms; provided, that, with respect to each such
agreement, the enforceability thereof may be limited by applicable bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium or similar laws from time to time in effect
affecting creditors rights and remedies generally and by general principles of equity (regardless
of whether such principles are considered in a proceeding in equity or at law).
(w) No Conflicts or Violations. None of (i) the offering, issuance and sale by the Issuers of
the Notes or the Subsidiary Guarantors of the Guarantees, (ii) the execution, delivery and
performance of this Agreement by the Plains Parties, (iii) the consummation of the transactions
contemplated by this Agreement or (iv) the execution, delivery and performance of the Indenture by
the Plains Parties that are parties thereto or the consummation of the transactions contemplated
thereby (A) conflicts or will conflict with or constitutes or will constitute a violation of the
Organizational Documents of any of the Plains Parties or the GP Entities, (B) conflicts or will
conflict with or constitutes or will constitute a violation of the Organizational Documents of any
of the PNG Entities, (C) conflicts or will conflict with or constitutes or will constitute a breach
or violation of, a change of control or a default under (or an event that, with notice or lapse of
time or both, would constitute such an event), any
8
indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to
which any of the Plains Parties, the GP Entities or the PNG Entities is a party or by which any of
them or any of their respective properties may be bound, (D) violates or will violate any statute,
law or regulation or any order, judgment, decree or injunction of any court or governmental agency
or body directed to any of the Plains Parties, the GP Entities or the PNG Entities or any of their
properties in a proceeding to which any of them or their property is a party or (E) results or will
result in the creation or imposition of any Lien upon any property or assets of any of the Plains
Parties, the GP Entities or the PNG Entities, which conflicts, breaches, violations, defaults or
Liens, in the case of clauses (B), (C), (D) or (E), would reasonably be expected to have a Material
Adverse Effect or materially impair the ability of the Plains Parties to consummate the
transactions contemplated by this Agreement.
(x) No Consents. No consent, approval, authorization, filing with or order of any court,
governmental agency or body having jurisdiction over any of the Plains Entities or any of their
respective properties is required in connection with (i) the offering, issuance and sale by the
Issuers of the Notes or the Subsidiary Guarantors of the Guarantees, (ii) the execution, delivery
and performance of, or the consummation by the Plains Parties of the transactions contemplated by
this Agreement, (iii) the execution, delivery and performance of the Indenture by the Plains
Parties that are parties thereto or the consummation of the transactions contemplated thereby,
except (A) such as have been obtained under the Securities Act, (B) such as may be required under
the blue sky laws of any jurisdiction or the by-laws and rules of the Financial Industry Regulatory
Authority, Inc. (FINRA) in connection with the purchase and distribution by the Underwriters of
the Notes in the manner contemplated herein and in the Pricing Disclosure Package and the
Prospectus and (C) such that the failure to obtain or make would not reasonably be expected to have
a Material Adverse Effect or materially impair the ability of the Plains Parties to consummate the
transactions contemplated by this Agreement.
(y) No Default. (i) None of the Plains Parties or the GP Entities is in violation of its
Organizational Documents in any material respect; (ii) none of the PNG Entities is in violation of
its Organizational Documents; (iii) none of the Plains Parties, the GP Entities or the PNG Entities
is in violation of any law, statute, ordinance, administrative or governmental rule or regulation
applicable to it or of any decree of any court or governmental agency or body having jurisdiction
over it; and (iv) none of the Plains Parties, the GP Entities or the PNG Entities is in breach,
default (or an event that, with notice or lapse of time or both, would constitute such an event) or
violation in the performance of any obligation, covenant or condition contained in any bond,
debenture, note or any other evidence of indebtedness or in any agreement, indenture, lease or
other instrument to which it is a party or by which it or any of its properties may be bound, which
breach, default or violation, in the case of (ii), (iii) or (iv) would, if continued, reasonably be
expected to have a Material Adverse Effect or materially impair the ability of any of the Plains
Parties to perform its obligations under this Agreement.
(z) Independent Registered Public Accounting Firm. PricewaterhouseCoopers LLP, which has
certified the audited financial statements included or incorporated by reference in the
Registration Statement, the most recent Preliminary Prospectus and the Prospectus (and any
amendment or supplement thereto), are an independent registered public accounting firm with respect
to the GP Entities and the Partnership and its consolidated subsidiaries, as required
9
by the Securities Act and the Rules and Regulations and the Public Company Accounting
Oversight Board.
(aa) Financial Statements. At September 30, 2010, the Partnership had, on an as adjusted
basis as indicated in the Prospectus (and any amendment or supplement thereto), an approximate
total capitalization as set forth therein. The financial statements (including the related notes
and supporting schedules) and other financial information included or incorporated by reference in
the Registration Statement, the most recent Preliminary Prospectus and the Prospectus (and any
amendment or supplement thereto) present fairly in all material respects the financial position,
results of operations and cash flows of the entities purported to be shown thereby, at the dates
and for the periods indicated, and have been prepared in conformity with generally accepted
accounting principles applied on a consistent basis throughout the periods indicated, except to the
extent disclosed therein. The summary and selected historical financial information included or
incorporated by reference in the Registration Statement, the most recent Preliminary Prospectus and
the Prospectus (and any amendment or supplement thereto) is accurately presented in all material
respects and prepared on a basis consistent with the audited and unaudited historical consolidated
financial statements from which it has been derived, except as described therein. The pro forma
financial statements and other pro forma financial information, if any, included or incorporated by
reference in the Registration Statement, the most recent Preliminary Prospectus and the Prospectus
(and any amendment or supplement thereto) (i) present fairly in all material respects the
information shown therein, (ii) have been prepared in accordance with the Commissions rules and
guidelines with respect to pro forma financial statements and (iii) have been properly computed on
the bases described therein. The assumptions used in the preparation of the pro forma financial
statements and other pro forma financial information, if any, included or incorporated by reference
in the Registration Statement, the most recent Preliminary Prospectus and the Prospectus (and any
amendment or supplement thereto) are reasonable, and the adjustments used therein are appropriate
to give effect to the transactions or circumstances referred to therein. No other financial
statements or schedules of the Issuers are required by the Securities Act or the Exchange Act to be
included in the Registration Statement, the most recent Preliminary Prospectus or the Prospectus.
(bb) No Material Adverse Change. None of the Plains Entities has sustained, since the date of
the latest audited financial statements included in the Registration Statement, the Pricing
Disclosure Package and the Prospectus, any material loss or interference with its business from
fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, investigation, order or decree, other than as set forth or
contemplated in the Registration Statement, the Pricing Disclosure Package and the Prospectus and
other than as would not reasonably be expected to have a Material Adverse Effect. Except as
disclosed in the Pricing Disclosure Package and the Prospectus, subsequent to the respective dates
as of which information is given in the Registration Statement, the Pricing Disclosure Package and
the Prospectus, in each case excluding any amendments or supplements to the foregoing made after
the execution of this Agreement, there has not been (i) any Material Adverse Effect, or any
development that would, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect, (ii) any transaction which is material to the Plains Entities taken as a whole,
other than transactions in the ordinary course of business as such business is described in the
Registration Statement, the Pricing Disclosure Package and the Prospectus or (iii) any dividend or
distribution of any kind declared, paid or made on the security
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interests of any of the Plains Entities, in each case other than as set forth in the
Registration Statement, the Pricing Disclosure Package and the Prospectus.
(cc) Required Disclosures and Descriptions. There are no legal or governmental proceedings
pending or, to the knowledge of the Plains Parties, threatened, against any of the Plains Entities,
or to which any of the Plains Entities is a party, or to which any of their respective properties
is subject, that are required to be described in the Registration Statement, the Pricing Disclosure
Package or the Prospectus but are not described as required, and there are no agreements,
contracts, indentures, leases or other instruments that are required to be described in the
Registration Statement, the Pricing Disclosure Package or the Prospectus or to be filed as an
exhibit to the Registration Statement that are not described or filed as required by the Securities
Act or the Exchange Act.
(dd) Title to Properties. The Plains Entities, directly or indirectly, have good and
indefeasible title to all real property and good title to all personal property described in the
Pricing Disclosure Package and the Prospectus as being owned by them, free and clear of all Liens
except (i) as provided in the Second Restated Credit Agreement dated November 6, 2008, as amended
(the Restated Facility), among Plains Marketing, L.P. (Plains Marketing), Bank of America,
N.A., as administrative agent thereunder and the lenders from time to time party thereto, described
in the Pricing Disclosure Package and the Prospectus and (ii) such as would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect; and all real
property and buildings held under lease by the Plains Entities are held, directly or indirectly,
under valid and subsisting and enforceable leases with such exceptions as would not reasonably be
expected to have a Material Adverse Effect, as described in the Pricing Disclosure Package and the
Prospectus.
(ee) Permits. Each of the Plains Entities, directly or indirectly, has such permits,
consents, licenses, franchises, certificates and authorizations of governmental or regulatory
authorities (Permits) as are necessary to own its properties and to conduct its business in the
manner described in the Pricing Disclosure Package and the Prospectus, subject to such
qualifications as may be set forth in the Pricing Disclosure Package and the Prospectus and except
for such Permits the failure of which to have obtained would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect; and none of the Plains Entities has
received, directly or indirectly, any notice of proceedings relating to the revocation or
modification of any such permit which, individually or in the aggregate, if the subject of an
unfavorable decision, ruling or finding would reasonably be expected to have a Material Adverse
Effect, except as set forth in or contemplated in the Pricing Disclosure Package and the
Prospectus.
(ff) Rights-of-Way. Each of the Plains Entities, directly or indirectly, has such consents,
easements, rights-of-way or licenses from any person (rights-of-way) as are necessary to conduct
its business in the manner described in the Pricing Disclosure Package and the Prospectus, subject
to such qualifications as may be set forth in the Pricing Disclosure Package and the Prospectus and
except for such rights-of-way the failure of which to have obtained would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect; each of the Plains
Entities, directly or indirectly, has fulfilled and performed all its material obligations with
respect to such rights-of-way and no event has occurred that allows,
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or after notice or lapse of time would allow, revocation or termination thereof or would
result in any impairment of the rights of the holder of any such rights-of-way, except for such
failures to perform, revocations, terminations and impairments that would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect, subject in each case
to such qualification as may be set forth in the Pricing Disclosure Package and the Prospectus.
(gg) Investment Company. None of the Plains Parties is now, and after sale of the Notes to be
sold by the Issuers hereunder and application of the net proceeds from such sale as described in
the Pricing Disclosure Package and the Prospectus under the caption Use of Proceeds, none of the
Plains Parties will be, (i) an investment company or a company controlled by an investment
company, each within the meaning of the Investment Company Act of 1940, as amended (the
Investment Company Act), (ii) a gas utility, within the meaning of Tex. Util. Code § 121.001
or (iii) a public utility or utility within the meaning of the Public Utility Regulatory Act of
Texas or under similar laws of any state in which any such Plains Parties does business; other than
in respect of any Subsidiary that is under the jurisdiction of the California Public Utility
Commission.
(hh) Environmental Compliance. Except as described in the Pricing Disclosure Package and the
Prospectus, none of the Plains Entities, directly or indirectly, has violated any environmental,
safety, health or similar law or regulation applicable to its business relating to the protection
of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants
or contaminants (Environmental Laws), or lacks any permits, licenses or other approvals required
of them under applicable Environmental Laws to own, lease or operate their properties and conduct
their business as described in the Pricing Disclosure Package and the Prospectus or is violating
any terms and conditions of any such permit, license or approval, which in each case would
reasonably be expected to have a Material Adverse Effect.
(ii) No Labor Disputes. No labor dispute with the employees of any of the Plains Entities
exists or, to the knowledge of the Plains Parties, is imminent, that would reasonably be expected
to have a Material Adverse Effect.
(jj) Insurance. The Partnership maintains or is entitled to the benefits of insurance covering
its properties, operations, personnel and businesses against such losses and risks as are
reasonably adequate to protect it and its businesses in a manner consistent with other businesses
similarly situated. All such insurance is outstanding and duly in force on the date hereof and
will be outstanding and duly in force on the Delivery Date.
(kk) No Legal Actions. Except as described in the Pricing Disclosure Package and the
Prospectus, there is (i) no action, suit or proceeding before or by any court, arbitrator or
governmental agency, body or official, domestic or foreign, now pending or, to the knowledge of the
Plains Parties, threatened, to which any of the Plains Entities, or any of their respective
subsidiaries, is or may be a party or to which the business or property of any of the Plains
Entities, or any of their respective subsidiaries, is or may be subject, and (ii) no injunction,
restraining order or order of any nature issued by a federal or state court or foreign court of
competent jurisdiction to which any of the Plains Entities is or may be subject, that, in the case
of clauses (i) and (ii) above, would reasonably be expected to have, individually or in the
aggregate,
12
a Material Adverse Effect or prevent or result in the suspension of the offering and issuance
of the Notes and the Guarantees.
(ll) Distribution Restrictions. No Subsidiary is currently prohibited, directly or
indirectly, from making any distributions to the Partnership or another Subsidiary, from making any
other distribution on such Subsidiarys equity interests, from repaying to the Partnership or its
affiliates any loans or advances to such Subsidiary from the Partnership or its affiliates or from
transferring any of such Subsidiarys property or assets to the Partnership or any other
Subsidiary, except (i) as described in or contemplated by the Pricing Disclosure Package and the
Prospectus (exclusive of any amendment or supplement thereto), (ii) as provided in the Credit
Agreement dated April 1, 2010 (the PNG Facility) among PNG, Bank of America, N.A., DnB Nor Bank
ASA, Wells Fargo Bank, National Association, UBS Loan Finance LLC and Citibank, N.A. and the other
lenders from time to time party thereto, (iii) such prohibitions mandated by the laws of each such
Subsidiarys state of formation and the terms of any such Subsidiarys Organizational Documents and
(iv) where such prohibition would reasonably be expected to have a Material Adverse Effect.
(mm) No Distribution of Other Offering Materials. None of the Plains Entities has distributed
and, prior to the later to occur of (i) the Delivery Date and (ii) completion of the distribution
of the Notes, as the case may be, will not distribute, any prospectus (as defined under the
Securities Act) in connection with the offering and sale of the Notes other than any Preliminary
Prospectus, the Prospectus, any Issuer Free Writing Prospectus, subject to the conditions in
Section 1(h) of this Agreement, or other materials, if any, permitted by the Securities Act,
including Rule 134 of the Rules and Regulations.
(nn) Books and Records; Accounting Controls. The Partnership maintains a system of internal
accounting controls sufficient to provide reasonable assurance that (i) transactions are executed
in accordance with managements general or specific authorization; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain accountability for assets; (iii) access to assets is
permitted only in accordance with managements general or specific authorization; and (iv) the
recorded accountability for assets is compared with existing assets at reasonable intervals and
appropriate action is taken with respect to any differences.
(oo) Sarbanes-Oxley Act. The Partnership and, to the knowledge of the Plains Parties, the
directors and officers of GP LLC in their capacities as such, are in compliance in all material
respects with all applicable and effective provisions of the Sarbanes-Oxley Act of 2002 and the
rules and regulations promulgated thereunder.
(pp) Disclosure Controls. The Partnership maintains disclosure controls and procedures (to
the extent required by and as such term is defined in Rules 13a-15 and 15d-15 under the Exchange
Act), that (i) are designed to provide reasonable assurance that material information relating to
the Partnership, including its consolidated subsidiaries, is recorded, processed, summarized and
communicated to the principal executive officer, the principal financial officer and other
appropriate officers of GP LLC to allow for timely decisions regarding required disclosure,
particularly during the periods in which the periodic reports required under the Exchange Act are
being prepared; (ii) have been evaluated for effectiveness as
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of the end of the Partnerships most recent fiscal quarter; and (iii) are effective in all
material respects to perform the functions for which they are established.
(qq) No Deficiency in Internal Controls. Based on the evaluation of its disclosure controls
and procedures conducted in connection with the preparation and filing of the Partnerships Form
10-K, the Partnership is not aware of (i) any significant deficiency or material weakness in the
design or operation of internal controls over financial reporting that are likely to adversely
affect its ability to record, process, summarize and report financial data; or (ii) any fraud,
whether or not material, that involves management or other employees who have a significant role in
the internal controls over financial reporting of the Partnership.
(rr) FCPA. None of the Plains Entities nor, to the knowledge of the Plains Parties, any
director, officer, agent or employee of the Plains Entities (in their capacity as director,
officer, agent or employee) is aware of or has taken any action, directly or indirectly, that would
result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and
the rules and regulations thereunder.
(ss) Money Laundering Laws. No action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Plains Entities that involve
allegations of money laundering is pending or, to the knowledge of the Plains Parties, threatened.
(tt) OFAC. None of the Plains Entities nor, to the knowledge of the Plains Parties, any
director, officer or employee of the Plains Entities (in their capacity as director, officer or
employee) has received notice that it is subject to any sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department.
The applicable statements made in the certificates described in Sections 7(j) and 7(s) shall
be deemed representations and warranties by the Plains Parties, as to matters covered thereby, to
the Underwriters.
2. Purchase and Sale. Subject to the terms and conditions and in reliance upon the
representations and warranties herein set forth, the Issuers agree to sell to each Underwriter, and
each Underwriter agrees, severally and not jointly, to purchase from the Issuers the principal
amount of Notes set forth opposite such Underwriters name on Schedule I hereto at a
purchase price of 98.871% of the principal amount thereof, plus accrued interest, if any, from the
Delivery Date.
3. Delivery and Payment. Delivery of and payment for the Notes shall be made at the office
of Vinson & Elkins L.L.P., 1001 Fannin, Houston, Texas 77002 at 9:00 a.m., Houston time, on January
14, 2011, or at such time on such later date not more than three business days after the foregoing
date as the Representatives shall designate, which date and time may be postponed by agreement
between the Representatives and the Issuers or as provided in Section 9 hereof (such date and time
of delivery and payment for the Notes being herein called the Delivery Date). Payment for the
Notes shall be made by wire transfer in immediately available funds to the account(s) specified by
the Issuers to the Representatives against delivery to the nominee of The
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Depository Trust Company (DTC), for the account of the Underwriters, of one or more global notes
representing the Notes (collectively, the Global Note).
4. Offering by the Underwriters. It is understood that the several Underwriters propose to
offer the Notes for sale to the public as set forth in the Prospectus.
5. Agreements of the Plains Parties. Each of the Plains Parties, jointly and severally,
acknowledges and agrees with the Underwriters that:
(a) Post-Effective Amendments. If, at the Applicable Time, it is necessary for a
post-effective amendment to the Registration Statement to be declared effective before the
offering of the Notes may commence, the Plains Parties will endeavor to cause such
post-effective amendment to become effective as soon as possible and will advise the
Representatives promptly and, if requested by the Representatives, will confirm such advice
in writing when such post-effective amendment has become effective.
(b) Preparation of Prospectus and Registration Statement. The Issuers will advise the
Representatives promptly and, if requested by the Representatives, will confirm such advice
in writing: (i) of any request by the Commission for amendment of or a supplement to the
Registration Statement, the Preliminary Prospectus or the Prospectus or for additional
information; (ii) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or of the suspension of qualification of the
Notes for offering or sale in any jurisdiction or the initiation of any proceeding for such
purpose; and (iii) within the period of time referred to in paragraph (e) below, of any
change in the condition (financial or other), business, prospects, properties, net worth or
results of operations of the Plains Entities, taken as a whole, or of the happening of any
event that makes any statement of a material fact made in the Registration Statement, the
Pricing Disclosure Package or the Prospectus (as then amended or supplemented) untrue or
that requires the making of any additions to or changes in the Registration Statement, the
Pricing Disclosure Package or the Prospectus (as then amended or supplemented) in order to
state a material fact required by the Securities Act or the regulations thereunder to be
stated therein or necessary in order to make the statements therein (in the case of any
Preliminary Prospectus or the Prospectus, in the light of the circumstances under which any
such statements were made) not misleading, or of the necessity to amend or supplement the
Prospectus (as then amended or supplemented) to comply with the Securities Act or any other
applicable law. If at any time the Commission shall issue any stop order suspending the
effectiveness of the Registration Statement, the Partnership will make every commercially
reasonable effort to obtain the withdrawal of such order at the earliest possible time.
(c) Final Term Sheet and Issuer Free Writing Prospectuses. The Issuers agree to (i)
prepare a final term sheet, containing a description of the final terms of the Notes and the
offering thereof, in the form approved by the Representatives and attached as Schedule
II hereto, and to file such term sheet pursuant to Rule 433 under the Securities Act
within the time required by such Rule and (ii) not to make any offer relating to the Notes
that would constitute an Issuer Free Writing Prospectus without the prior written consent of
the Representatives.
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(d) Copies of Registration Statement. The Issuers will furnish to the
Underwriters, without charge, (i) one copy of the manually signed copy of the registration
statement corresponding to the Commissions electronic data gathering, analysis and
retrieval system (EDGAR) version filed with the Commission and of each amendment thereto,
including financial statements and all exhibits to the registration statement, (ii) such
number of conformed copies of the registration statement as originally filed and of each
amendment thereto, but without exhibits, as the Underwriters or the Underwriters counsel
may reasonably request, (iii) such number of copies of the Incorporated Documents, without
exhibits, as the Underwriters may request, and (iv) such number of copies of the exhibits to
the Incorporated Documents as the Underwriters may request.
(e) Filing of Amendment or Supplement. For such period as in the opinion of counsel
for the Underwriters a prospectus is required by the Securities Act to be delivered in
connection with sales by any Underwriter or dealer, the Issuers will not file any amendment
to the Registration Statement, supplement to the Prospectus (or any other prospectus
relating to the Notes filed pursuant to Rule 424(b) of the Rules and Regulations that
differs from the Prospectus as filed pursuant to such Rule 424(b)), or any Preliminary
Prospectus or Issuer Free Writing Prospectus of which the Representatives shall not
previously have been advised or to which the Representatives shall have reasonably objected
in writing after being so advised unless the Issuers shall have determined based upon the
advice of counsel that such amendment, supplement or other filing is required by law; and
the Issuers will promptly notify the Representatives after they shall have received notice
thereof of the time when any amendment to the Registration Statement becomes effective or
when any supplement to the Prospectus has been filed.
(f) Copies of Documents to the Underwriters. As soon after the Applicable Time as
possible and thereafter from time to time for such period as in the opinion of counsel for
the Underwriters a prospectus is required by the Securities Act to be delivered in
connection with sales by any Underwriter or dealer, the Issuers will expeditiously deliver
to each Underwriter and each dealer that the Underwriters may specify, without charge, as
many copies of the Prospectus (and of any amendment or supplement thereto) as the
Underwriters may reasonably request. At any time after nine months after the time of
issuance of the Prospectus, upon request and without charge, the Issuers will deliver as
many copies of an amended or supplemented Prospectus complying with Section 10(a)(3) of the
Securities Act as the Underwriters may reasonably request, provided that a prospectus is
required by the Securities Act to be delivered in connection with sales of Notes by any
Underwriter or dealer. The Issuers consent to the use of the Prospectus (and of any
amendment or supplement thereto) in accordance with the provisions of the Securities Act and
with the securities or Blue Sky laws of the jurisdictions in which the Notes are offered by
the Underwriters and by all dealers to whom Notes may be sold, both in connection with the
offering and sale of the Notes and for such period of time thereafter as the Prospectus is
required by the Securities Act to be delivered in connection with sales by any Underwriter
or dealer. If during such period of time any event shall occur that in the judgment of the
Issuers or in the opinion of counsel for the Underwriters and the Issuers is required to be
set forth in the Prospectus (as then amended or
16
supplemented) or should be set forth therein in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading, or if it is
necessary to supplement or amend the Prospectus (or to file under the Exchange Act any
document which, upon filing, becomes an Incorporated Document) to comply with the Securities
Act or any other law, the Issuers will forthwith prepare and, subject to the provisions of
paragraph (e) above, file with the Commission an appropriate supplement or amendment thereto
(or to such document), and will expeditiously furnish to the Underwriters and dealers a
reasonable number of copies thereof; provided that, if any such event necessitating a
supplement or amendment to the Prospectus occurs at any time after nine months after the
time of issuance of the Prospectus, such supplement or amendment shall be prepared at the
Underwriters expense. In the event that the Issuers and the Representatives agree that the
Prospectus should be amended or supplemented, the Issuers, if requested by the
Representatives, will promptly issue a press release announcing or disclosing the matters to
be covered by the proposed amendment or supplement unless the Issuers shall have determined,
based on the advice of counsel, that the issuance of such press release would not be
required by law.
(g) Blue Sky Laws. The Issuers and the Subsidiary Guarantors will cooperate with the
Representatives and with counsel for the Underwriters in connection with the registration or
qualification of the Notes and the Guarantees, respectively, for offering and sale by the
Underwriters and by dealers under the securities or Blue Sky laws of such jurisdictions as
the Underwriters may reasonably designate and will file such consents to service of process
or other documents reasonably necessary or appropriate in order to effect such registration
or qualification; provided that in no event shall any Plains Party be obligated to
qualify to do business in any jurisdiction where it is not now so qualified or to take any
action that would subject it to service of process in suits, other than those arising out of
the offering or sale of the Notes, in any jurisdiction where it is not now so subject. The
Issuers and Subsidiary Guarantors will promptly notify the Representatives of the receipts
by the Issuers and Subsidiary Guarantors of any notifications with respect to the suspension
of the qualifications of the Notes and Guarantees, respectively, for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose.
(h) Reports to Security Holders. In accordance with Section 11(a) of the Securities
Act and Rule 158 of the Rules and Regulations, the Issuers will make generally available to
their security holders an earnings statement (which need not be audited) in reasonable
detail covering the 12-month period beginning not later than the first day of the month next
succeeding the month in which occurred the effective date (within the meaning of Rule 158)
of the Registration Statement as soon as practicable after the end of such period.
(i) Copies of Reports. Unless otherwise available on EDGAR, during the period of two
years hereafter, the Issuers will furnish or make available to the Underwriters (i) as soon
as publicly available, a copy of each report of the Issuers mailed to unitholders or filed
with the Commission or the principal national securities exchange or automated quotation
system upon which the Notes may be listed, and (ii) from time to time such other information
concerning the Issuers as the Underwriters may reasonably request.
17
(j) Termination Expenses. If this Agreement shall terminate or shall be terminated
after execution pursuant to any provisions hereof (otherwise than pursuant to Section 9
hereof or Section 10 hereof (except pursuant to the first clause of Section 10(i))) or if
this Agreement shall be terminated by the Underwriters because of any failure or refusal on
the part of any of the Plains Parties to comply with the terms or fulfill any of the
conditions of this Agreement, the Plains Parties, jointly and severally, agree to reimburse
the Underwriters for all reasonable out-of-pocket expenses (including reasonable fees and
expenses of counsel for the Underwriters) incurred by the Underwriters in connection
herewith.
(k) Application of Proceeds. The Issuers will apply the net proceeds from the sale of
the Notes in accordance with the description set forth under the caption Use of Proceeds
in the Pricing Disclosure Package and the Prospectus.
(l) Filing of Prospectus. The Issuers will timely file the Prospectus, and any
amendment or supplement thereto, pursuant to Rule 424(b) of the Rules and Regulations and
will advise the Underwriters of the time and manner of such filing.
(m) Stabilization. Except as stated in this Agreement and the Prospectus, none of the
Plains Parties has taken, or will take, directly or indirectly, any action designed to or
that might reasonably be expected to cause or result in stabilization or manipulation of the
price of any security of the Issuers to facilitate the sale or resale of the Notes.
(n) Investment Company. The Plains Parties will not invest or otherwise use the
proceeds received by the Partnership from the sale of the Notes in such a manner as would
require any of the Plains Entities to register as an investment company within the meaning
of such term under the Investment Company Act and the rules and regulations of the
Commission thereunder.
(o) Exchange Act Reports. The Issuers, during the period when the Prospectus is
required to be delivered under the Securities Act, will file all documents required to be
filed with the Commission pursuant to the Exchange Act within the time periods required by
the Exchange Act.
(p) Free Writing Prospectuses. The Issuers have complied and will comply with the
requirements of Rule 433 under the Securities Act applicable to any Issuer Free Writing
Prospectus, including appropriate legending and timely filing with the Commission or
retention where required. The Issuers represent that they have satisfied and agree that
they will satisfy the conditions under Rule 433 under the Securities Act to avoid a
requirement to file with the Commission any electronic road show. The Issuers agree that if
at any time following issuance of an Issuer Free Writing Prospectus any event occurred or
occurs as a result of which such Issuer Free Writing Prospectus would conflict with the
information in the Registration Statement, the most recent Preliminary Prospectus or the
Prospectus or would include an untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of the
circumstances then prevailing, not misleading, the Issuers will give prompt notice thereof
to the Representatives and, if requested by the Representatives, will
18
prepare and furnish without charge to each Underwriter an Issuer Free Writing
Prospectus or other document that will correct such conflict, statement or omission;
provided, however, that this representation and warranty shall not apply to
any statements or omissions in an Issuer Free Writing Prospectus made in reliance upon and
in conformity with information furnished in writing to the Issuers by an Underwriter through
the Representatives expressly for use therein, which information is specified in Section 12.
(q) Clear Market. During the period from the date hereof through and including the
business day following the Delivery Date, the Issuers will not, without the prior written
consent of the Representatives, offer, sell, contract to sell or otherwise dispose of any
debt securities issued or guaranteed by the Plains Parties and having a tenor of more than
one year.
6. Indemnification and Contribution.
(a) Each of the Plains Parties, jointly and severally, agrees to indemnify and hold
harmless each Underwriter, the directors, officers, employees and agents of each
Underwriter, each affiliate of any Underwriter who has participated in the distribution of
the Notes as underwriters, each broker-dealer affiliate of any Underwriter and each other
affiliate of any Underwriter within the meaning of Rule 405 under the Securities Act, and
each person, if any, who controls any Underwriter within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act from and against any and all losses,
claims, damages, liabilities and expenses, joint or several (including reasonable costs of
investigation), to which they or any of them became subject under the Securities Act, the
Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or expenses
arise out of, or are based upon, (i) any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement, any Preliminary Prospectus, the
Prospectus, any Issuer Free Writing Prospectus or in any amendment or supplement thereto or
in any road show (as defined in Rule 433 of the Rules and Regulations) not constituting an
Issuer Free Writing Prospectus (a Non-Prospectus Road Show) or (ii) the omission or
alleged omission to state in the Registration Statement, any Preliminary Prospectus, the
Prospectus, any Issuer Free Writing Prospectus or in any amendment or supplement thereto or
in any Non-Prospectus Road Show, any material fact required to be stated therein or
necessary to make the statements therein (in the case of any Preliminary Prospectus or the
Prospectus, in the light of the circumstances under which any such statements were made) not
misleading, and shall reimburse each Underwriter and each such director, officer, employee
or controlling person promptly upon demand for any legal or other expenses reasonably
incurred by that Underwriter, director, officer, employee or controlling person in
connection with investigating or defending or preparing to defend against any such loss,
claim, damage, liability or action as such expenses are incurred; provided,
however, that the Plains Parties shall not be liable in any such case to the extent
that any such loss, claim, damage, liability or action arises out of, or is based upon, any
untrue statement or alleged untrue statement or omission or alleged omission made in the
Registration Statement, any Preliminary Prospectus, the Prospectus, any Issuer Free Writing
Prospectus or in any such amendment or supplement thereto or in any Non-Prospectus Road
Show, in reliance
19
upon and in conformity with written information concerning such Underwriter furnished
to the Issuers through the Representatives by or on behalf of any Underwriter specifically
for inclusion therein, which information consists solely of the information specified in
Section 12. The foregoing indemnity agreement is in addition to any liability that the
Plains Parties may otherwise have to any Underwriter or to any director, officer, employee
or controlling person of that Underwriter.
(b) If any action, suit or proceeding shall be brought against any Underwriter, any
director, officer, employee or agent of any Underwriter or any person controlling any
Underwriter in respect of which indemnity may be sought against a Plains Party, such
Underwriter or such director, officer, employee, agent or controlling person shall promptly
notify the Partnership in writing, and the Issuers shall assume the defense thereof,
including the employment of counsel reasonably satisfactory to such indemnified party and
payment of all reasonable fees and expenses. The failure to notify the indemnifying party
shall not relieve it from liability that it may have to an indemnified party unless the
indemnifying party is foreclosed by reason of such delay from asserting a defense otherwise
available to it. Such Underwriter or any such director, officer, employee, agent or
controlling person shall have the right to employ separate counsel in any such action, suit
or proceeding and to participate in (but not control) the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Underwriter or such director,
officer, employee, agent or controlling person unless (i) the Issuers have agreed in writing
to pay such fees and expenses, (ii) the Issuers have failed to assume the defense and employ
counsel within a reasonable period of time in light of the circumstances or (iii) such
indemnified party or parties shall have reasonably concluded, based on the advice of
counsel, that there may be defenses available to it or them that are different from,
additional to or in conflict with those available to the Issuers (in which case the Issuers
shall not have the right to direct the defense of such action, suit or proceeding on behalf
of the indemnified party or parties), in any of which events the Issuers shall pay the
reasonable fees and expenses of such counsel as such fees and expenses are incurred (it
being understood, however, that the Issuers shall not be liable for the expenses of more
than one separate counsel (in addition to any local counsel) in any one action, suit or
proceeding or series of related actions, suits or proceedings in the same jurisdiction
representing the indemnified parties who are parties to such action, suit or proceeding).
(c) Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless
the Plains Parties and their respective directors and the officers who sign the Registration
Statement, and any person who controls the Plains Parties within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act, to the same extent as the foregoing
indemnity from the Plains Parties to each Underwriter, but only with respect to information
furnished in writing by or on behalf of such Underwriter through the Representatives
expressly for use in the Registration Statement, any Preliminary Prospectus, the Prospectus,
any Issuer Free Writing Prospectus or in any amendment or supplement thereto or in any
Non-Prospectus Road Show, which information is limited to the information set forth in
Section 12. If any action, suit or proceeding shall be brought against a Plains Party, any
of such directors and officers or any such controlling person based on the Registration
Statement, any Preliminary
20
Prospectus, the Prospectus, any Issuer Free Writing Prospectus or in any amendment or
supplement thereto or in any Non-Prospectus Road Show, and in respect of which indemnity may
be sought against any Underwriter pursuant to this paragraph (c), such Underwriter shall
have the rights and duties given to the Plains Parties by paragraph (b) above (except that
if the Issuers shall have assumed the defense thereof such Underwriter shall not be required
to do so, but may employ separate counsel therein and participate in (but not control) the
defense thereof, but the fees and expenses of such counsel shall be at such Underwriters
expense), and the Plains Parties, any of such directors and officers and any such
controlling person shall have the rights and duties given to the Underwriters by paragraph
(b) above. The foregoing indemnity agreement shall be in addition to any liability that the
Underwriters may otherwise have.
(d) If the indemnification provided for in this Section 6 is unavailable to an
indemnified party under paragraph (a) or (c) hereof in respect of any losses, claims,
damages, liabilities or expenses referred to therein, then an indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages, liabilities or expenses (i)
in such proportion as is appropriate to reflect the relative benefits received by the Plains
Parties on the one hand and the Underwriters on the other hand from the offering of the
Notes, or (ii) if the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above but also the relative fault of the Plains Parties on the one hand and
the Underwriters on the other in connection with the statements or omissions that resulted
in such losses, claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations. The relative benefits received by the Plains Parties on the one
hand and the Underwriters on the other shall be deemed to be in the same proportion as the
total net proceeds from the offering (before deducting expenses) received by the Issuers
bear to the total underwriting discounts and commissions received by the Underwriters, in
each case as set forth in the table on the cover page of the Prospectus. The relative fault
of the Plains Parties on the one hand and the Underwriters on the other hand shall be
determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Plains Parties or any other affiliate of the Plains
Parties on the one hand, or by the Underwriters on the other hand, and the parties relative
intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission.
(e) The Plains Parties and the Underwriters agree that it would not be just and
equitable if contribution pursuant to this Section 6 were determined by a pro rata
allocation (even if the Underwriters were treated as one entity for such purpose) or by any
other method of allocation that does not take account of the equitable considerations
referred to in paragraph (d) above. The amount paid or payable by an indemnified party as a
result of the losses, claims, damages, liabilities and expenses referred to in paragraph (d)
above shall be deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating any claim or defending any such action, suit or proceeding. Notwithstanding
the provisions of this Section 6, no Underwriter shall be required to
21
contribute any amount in excess of the amount by which the total price of the Notes
underwritten by it and distributed to the public exceeds the amount of any damages that such
Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. The
Underwriters obligations to contribute as provided in this Section 6 are several and not
joint.
(f) No indemnifying party shall (i) without the prior written consent of the
indemnified parties (which consent shall not be unreasonably withheld), settle or compromise
or consent to the entry of any judgment with respect to any pending or threatened claim,
action, suit or proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential parties to such
claim or action) unless such settlement, compromise or consent includes an unconditional
release of each indemnified party from all liability arising out of such claim, action, suit
or proceeding and does not include any findings of fact or admissions of fault or
culpability as to the indemnified party, or (ii) be liable for any settlement of any such
action effected without its written consent (which consent shall not be unreasonably
withheld), but if settled with the consent of the indemnifying party or if there be a final
judgment for the plaintiff in any such action, the indemnifying party agrees to indemnify
and hold harmless any indemnified party from and against any loss or liability by reason of
such settlement or judgment.
(g) Any losses, claims, damages, liabilities or expenses for which an indemnified party
is entitled to indemnification or contribution under this Section 6 shall be paid by the
indemnifying party to the indemnified party as such losses, claims, damages, liabilities or
expenses are incurred. The indemnity and contribution agreements contained in this Section
6 and the covenants, representations and warranties of the Plains Parties set forth in this
Agreement shall remain operative and in full force and effect, regardless of (i) any
investigation made by or on behalf of any Underwriter or any person controlling any
Underwriter or the Plains Parties, GP LLC or any of their respective directors or officers
or any person controlling the Plains Parties, (ii) acceptance of any Notes and payment
therefor in accordance with the terms of this Agreement, and (iii) any termination of this
Agreement. A successor to any Underwriter or any person controlling any Underwriter, or to
the Plains Parties, GP LLC or any of their respective directors or officers or any person
controlling a Plains Party shall be entitled to the benefits of the indemnity, contribution
and reimbursement agreements contained in this Section 6.
7. Conditions to the Obligations of the Underwriters. The several obligations of the
Underwriters to purchase the Notes are subject to the following conditions:
(a) All filings required by Rule 424 and Rule 430B of the Rules and Regulations shall
have been made. All material required to be filed by the Issuers pursuant to Rule 433(d)
under the Securities Act shall have been filed with the Commission within the applicable
time period prescribed for such filing by Rule 433 under the Securities Act. No stop order
(i) suspending the effectiveness of the
22
Registration Statement or (ii) suspending or preventing the use of the most recent
Preliminary Prospectus, the Prospectus or any Issuer Free Writing Prospectus shall have been
issued and no proceeding for that purpose shall have been instituted or, to the knowledge of
the Plains Parties or any Underwriter, threatened by the Commission, and any request of the
Commission for additional information (to be included in the Registration Statement or the
Prospectus or otherwise) shall have been complied with to the reasonable satisfaction of the
Representatives.
(b) Subsequent to the Applicable Time, there shall not have occurred (i) any change, or
any development involving a prospective change, that would reasonably be expected to have a
Material Adverse Effect, not contemplated by the Prospectus, which in the Representatives
opinion, would materially adversely affect the market for the Notes, or (ii) any event or
development relating to or involving any of the Plains Parties or any executive officer or
director of any of such entities that makes any statement made in the Prospectus untrue or
which, in the opinion of the Issuers and their counsel or the Underwriters and their
counsel, requires the making of any addition to or change in the Prospectus in order to
state a material fact required by the Securities Act or any other law to be stated therein
or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading, if amending or supplementing the Prospectus to
reflect such event or development would, in the Representatives opinion, materially
adversely affect the market for the Notes.
(c) The Representatives shall have received an opinion of Vinson & Elkins L.L.P.,
counsel for the Plains Parties, dated the Delivery Date and addressed to the Underwriters,
to the effect that:
(i) Each of the Plains Parties (other than the Canadian Subsidiary Guarantors
and Lone Star Trucking, LLC, a California limited liability company (Lone Star),
Plains Marketing Canada LLC, a Delaware limited liability company (PMC LLC), and
Plains Midstream GP LLC, a Delaware limited liability company (Plains Midstream GP
LLC, and together with Lone Star and PMC LLC, the Excluded Domestic Subsidiary
Guarantors)), as to which such counsel need not express an opinion), the GP
Entities and the PNG Entities has been duly formed or incorporated and is validly
existing in good standing as a limited partnership, limited liability company or
corporation under the laws of its respective jurisdiction of formation or
incorporation with full corporate, limited partnership or limited liability company
power and authority, as the case may be, to own or lease its properties and to
conduct its business, in each case in all material respects.
(ii) Each Plains Entity (other than a Canadian Subsidiary, as to which such
counsel need not express an opinion) that serves as a general partner of another
Plains Entity has full corporate or limited liability company power and authority,
as the case may be, to serve as general partner of such Plains Entity, in each case
in all material respects.
23
(iii) The GP Entities hold the general partner and membership interests
described in the Registration Statement; all of such interests have been duly
authorized and validly issued in accordance with their respective limited
partnership or limited liability company agreement, as applicable, and all the
membership interests in the General Partner are fully paid (to the extent required
under the General Partner LLC Agreement) and nonassessable (except as such
assessability may be affected by Sections 18-607 and 18-804 of the Delaware LLC
Act).
(iv) All of the outstanding shares of capital stock or other equity interests
(other than general partner interests) of each Domestic Subsidiary Guarantor (other
than the Excluded Domestic Subsidiary Guarantors, as to which such counsel need not
express an opinion) and each PNG Entity (a) have been duly authorized and validly
issued (in the case of an interest in a limited partnership or limited liability
company, in accordance with the Organizational Documents of such Domestic Subsidiary
Guarantor or PNG Entity), are fully paid (in the case of an interest in a limited
partnership or limited liability company, to the extent required under the
Organizational Documents of such Domestic Subsidiary Guarantor or PNG Entity) and
nonassessable (except (i) in the case of an interest in a Delaware limited
partnership or Delaware limited liability company, as such nonassessability may be
affected by Sections 17-607 and 17-804 of the Delaware LP Act or Sections 18-607 and
18-804 of the Delaware LLC Act, as applicable, (ii) in the case of an interest in a
limited partnership or limited liability company formed under the laws of another
domestic state, as such nonassessability may be affected by similar provisions of
such states limited partnership or limited liability company statute, as
applicable) and (b) except for an approximately 25.2% limited partnership interest
in PNG, are owned, directly or indirectly, by the Partnership, free and clear of all
Liens (A) in respect of which a financing statement under the Uniform Commercial
Code of the States of Delaware or Texas naming the Partnership as debtor or, in the
case of capital stock or other equity interests of a Domestic Subsidiary Guarantor
(other than the Excluded Domestic Subsidiary Guarantors, as to which such counsel
need not express an opinion) or PNG Entity owned directly by one or more other
Domestic Subsidiary Guarantors (other than the Excluded Domestic Subsidiary
Guarantors, as to which such counsel need not express an opinion) or PNG Entity,
naming any such other Domestic Subsidiary Guarantors or PNG Entities as debtor(s),
is on file in the office of the Secretary of State of the States of Delaware or
Texas or (B) otherwise known to such counsel, without independent investigation,
other than those created by or arising under the corporate, limited liability
company or partnership laws of the jurisdiction of formation or incorporation of the
respective Domestic Subsidiary Guarantor or PNG Entity, as the case may be.
(v) All outstanding general partner interests in each Domestic Subsidiary
Guarantor and PNG Entity that is a partnership have been duly authorized and validly
issued in accordance with the Organizational Documents of such Domestic Subsidiary
Guarantor and PNG Entity and are owned, directly or indirectly, by the Partnership,
free and clear of all Liens (A) in respect of which
24
a financing statement under the Uniform Commercial Code of the States of
Delaware or Texas naming the Partnership as debtor or, in the case of general
partner interests of a Domestic Subsidiary Guarantor or PNG Entity owned directly by
one or more other Domestic Subsidiary Guarantors or PNG Entities, naming any such
other Domestic Subsidiary Guarantors or PNG Entities as debtor(s), is on file in the
office of the Secretary of State of the States of Delaware or Texas or (B) otherwise
known to such counsel, without independent investigation, other than those created
by or arising under the partnership laws of the jurisdiction of formation of the
respective Domestic Subsidiary Guarantor or PNG Entity, as the case may be.
(vi) Each of the Issuers has the requisite power and authority to issue, sell
and deliver the Notes, and each of the Domestic Subsidiary Guarantors (other than
the Excluded Domestic Subsidiary Guarantors, as to which such counsel need not
express an opinion) has all requisite power and authority to issue and deliver the
Guarantees, in accordance with and upon the terms and conditions set forth in this
Agreement, its respective Organizational Documents, the Indenture, the Registration
Statement, the Pricing Disclosure Package and the Prospectus.
(vii) To such counsels knowledge, neither the filing of the Registration
Statement nor the offering or sale of the Notes as contemplated by this Agreement
gives rise to any rights for or relating to the registration of any Notes or other
securities of the Plains Parties, except such rights as have been waived or
satisfied.
(viii) The Indenture has been duly qualified under the Trust Indenture Act.
(ix) This Agreement has been duly authorized, executed and delivered by each of
the Plains Parties (other than the Canadian Subsidiary Guarantors and the Excluded
Domestic Subsidiary Guarantors, as to which such counsel need not express an
opinion).
(x) The Base Indenture and the Nineteenth Supplemental Indenture thereto have
been duly authorized, executed and delivered by each of the Plains Parties that is a
party thereto (other than the Canadian Subsidiary Guarantors and the Excluded
Domestic Subsidiary Guarantors, as to which such counsel need not express an
opinion), and (assuming the due authorization, execution and delivery thereof by the
Canadian Subsidiary Guarantors, the Excluded Domestic Subsidiary Guarantors and the
Trustee) the Indenture is a valid and legally binding agreement of such Plains
Parties, enforceable against each of them in accordance with its terms;
provided that the enforceability thereof may be limited by (A) applicable
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar
laws from time to time in effect affecting creditors rights and remedies generally
and by general principles of equity (regardless of whether such principles are
considered in a proceeding in equity or at law) and (B) public
25
policy, applicable law relating to fiduciary duties and indemnification and an
implied covenant of good faith and fair dealing.
(xi) The global certificate representing the Notes is in the form contemplated
by the Indenture, the Notes have been duly and validly authorized and, when such
certificate is executed and authenticated in accordance with the provisions of the
Indenture and the Notes and delivered to and paid for by the Underwriters under this
Agreement, the Notes will constitute legal, valid, binding and enforceable
obligations of the Issuers entitled to the benefits of the Indenture;
provided that the enforceability thereof may be limited by (A) applicable
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar
laws from time to time in effect affecting creditors rights and remedies generally
and by general principles of equity (regardless of whether such principles are
considered in a proceeding in equity or at law) and (B) public policy, applicable
law relating to fiduciary duties and indemnification and an implied covenant of good
faith and fair dealing.
(xii) The Guarantees have been duly authorized by each of the Subsidiary
Guarantors (other than the Excluded Domestic Subsidiary Guarantors, as to which such
counsel need not express an opinion) and, when the Notes have been duly executed,
authenticated, issued and delivered as provided in the Indenture and paid for as
provided herein (and assuming due execution, authentication and delivery of the
Guarantees by the Canadian Subsidiaries and by the Excluded Domestic Subsidiary
Guarantors), will be valid and legally binding obligations of each of the Subsidiary
Guarantors, enforceable against each of the Subsidiary Guarantors in accordance with
their terms, provided that the enforceability thereof may be limited by (A)
applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
or similar laws from time to time in effect affecting creditors rights and remedies
generally and by general principles of equity (regardless of whether such principles
are considered in a proceeding in equity or at law) and (B) public policy,
applicable law relating to fiduciary duties and indemnification and an implied
covenant of good faith and fair dealing.
(xiii) At or before the Delivery Date, the partnership agreement or limited
liability company agreement, as applicable, of each of the Plains Parties and the GP
Entities has been duly authorized, executed and delivered by the parties thereto and
is a valid and legally binding agreement of such parties thereto, enforceable
against the parties thereto in accordance with their respective terms; provided,
that, with respect to each such agreement, the enforceability thereof may be limited
by (A) applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium or similar laws from time to time in effect affecting creditors rights
and remedies generally and by general principles of equity (regardless of whether
such principles are considered in a proceeding in equity or at law) and (B) public
policy, applicable law relating to fiduciary duties and indemnification and an
implied covenant of good faith and fair dealing.
26
(xiv) None of (A) the offering, issuance and sale by the Issuers of the Notes
or the Domestic Subsidiary Guarantors (other than the Excluded Domestic Subsidiary
Guarantors, as to which such counsel need not express an opinion) of the Guarantees,
(B) the execution, delivery and performance of this Agreement by the Plains Parties
(other than the Canadian Subsidiary Guarantors and the Excluded Domestic Subsidiary
Guarantors, as to which such counsel need not express an opinion), (C) the
consummation of the transactions contemplated by this Agreement, (D) the execution,
delivery and performance of the Indenture by the Plains Parties (other than the
Canadian Subsidiary Guarantors and the Excluded Domestic Subsidiary Guarantors, as
to which such counsel need not express an opinion) that are parties thereto or the
consummation of the transactions contemplated thereby (1) constitutes or will
constitute a violation of the Organizational Documents of any of the Plains Parties
(other than the Organizational Documents of the Canadian Subsidiary Guarantors or
the Excluded Domestic Subsidiary Guarantors, as to which such counsel need not
express an opinion) or the GP Entities, (2) constitutes or will constitute a
violation of the Organizational Documents of any of the Plains Entities, (3)
conflicts or will conflict with or constitutes or will constitute a breach or
violation of, a change of control or a default under (or an event that, with notice
or lapse of time or both, would constitute such an event), any document or agreement
filed as an exhibit to the Registration Statement and any Incorporated Document
(other than the Second Amended and Restated Credit Agreement [US/Canada Facilities]
dated July 31, 2006 (as amended, the Revolving Agreement) among the Partnership,
PMC (Nova Scotia) Company, a Nova Scotia unlimited liability company (PMC NS), and
Plains Midstream Canada ULC, an Alberta unlimited liability company (Plains
Midstream Canada), as borrowers thereunder, Bank of America, N.A., as
administrative agent thereunder, Bank of America, N.A., acting through its Canada
Branch, as Canadian administrative agent thereunder, and various other agents
thereunder and lenders from time to time party thereto, the PNG Facility, the
Restated Facility and the 364- Day Credit Agreement dated January 3, 2011 (the
364-Day Credit Agreement) by and among the Partnership, the lenders party thereto
and Bank of America, N.A., as administrative agent, as to which such counsel need
not express an opinion), (4) results or will result in any violation of the Delaware
LP Act, the Delaware LLC Act, the Delaware General Corporation Law (the DGCL), the
laws of the State of Texas or federal law, or (5) results or will result in the
creation or imposition of any Lien upon any property or assets of any of the Plains
Parties (other than the Canadian Subsidiary Guarantors and the Excluded Domestic
Subsidiary Guarantors, as to which such counsel need not express an opinion), the GP
Entities or the PNG Entities which conflicts, breaches, violations or defaults in
the case of clauses (2), (3), (4) or (5) would reasonably be expected to have a
Material Adverse Effect or materially impair the ability of the Plains Parties to
consummate the transactions contemplated by this Agreement, it being understood that
such counsel need not express an opinion in clause (4) of this paragraph (xvi) with
respect to any securities or other anti-fraud law.
27
(xv) No consent, approval, authorization, filing with or order of any federal,
Delaware or Texas court, governmental agency or body having jurisdiction over the
Plains Parties, the GP Entities or the PNG Entities or any of their respective
properties is required in connection with (A) the offering, issuance and sale by the
Issuers of the Notes or the Domestic Subsidiary Guarantors of the Guarantees, (B)
the execution, delivery and performance of this Agreement by the Plains Parties and
the consummation of the transactions contemplated by this Agreement, or (C) the
execution, delivery and performance of the Indenture by the Plains Parties that are
parties thereto or the consummation of the transactions contemplated thereby, except
(1) such as have been obtained under the Securities Act (as to which such counsel
need not express any opinion), and (2) such as may be required under the blue sky
laws of any jurisdiction or the by-laws and rules of FINRA in connection with the
purchase and distribution by the Underwriters of the Notes and the Guarantees in the
manner contemplated herein and in the Pricing Disclosure Package and the Prospectus
(as to which such counsel need not express any opinion), (3) such that the failure
to obtain would not reasonably be expected to have a Material Adverse Effect or
materially impair the ability of the Plains Parties to consummate the transactions
contemplated by this Agreement and (4) such other that have been obtained or taken
and are in full force and effect.
(xvi) The statements in the Registration Statement, the Pricing Disclosure
Package and the Prospectus under the caption Material U.S. Federal Income Tax
Consequences in relation to the Notes in each of the Pricing Disclosure Package and
the Prospectus, insofar as such statements purport to summarize certain provisions
of documents and legal matters referred to therein, fairly summarize such provisions
and legal matters in all material respects, subject to the qualifications and
assumptions stated therein; and the Indenture and the Notes and the Guarantees
conform in all material respects to the descriptions thereof contained in the
Registration Statement, the Pricing Disclosure Package and the Prospectus.
(xvii) The Registration Statement became effective under the Securities Act
upon its filing on October 14, 2009; to the knowledge of such counsel, no stop order
suspending the effectiveness of the Registration Statement has been issued and no
proceedings for that purpose have been instituted or threatened by the Commission;
and any required filing of the Prospectus pursuant to Rule 424(b) has been made in
the manner and within the time period required by such Rule.
(xviii) The Registration Statement, the Pricing Disclosure Package and the
Prospectus (except for the financial statements and the notes and the schedules
thereto and the other financial information included or incorporated by reference in
the Registration Statement, the Pricing Disclosure Package or the Prospectus, as to
which such counsel need not express an opinion) comply as to form in all material
respects with the requirements of the Securities Act and the Exchange Act and the
rules and regulations promulgated thereunder.
28
(xix) None of the Plains Parties is now, and after sale of the Notes to be sold
by the Issuers hereunder and application of the net proceeds from such sale as
described in the Pricing Disclosure Package and the Prospectus under the caption
Use of Proceeds, none of the Plains Parties will be, an investment company as
such term is defined in the Investment Company Act.
In addition, such counsel shall state that they have participated in conferences with
officers and other representatives of the Plains Parties and representatives of the
independent public accountants of GP LLC and the Partnership and the Underwriters
representatives and counsel, at which the contents of the Registration Statement, the
Pricing Disclosure Package and the Prospectus and related matters were discussed, and
although such counsel has not independently verified, is not passing on, and is not assuming
any responsibility for the accuracy, completeness or fairness of the statements contained
in, the Registration Statement, the Pricing Disclosure Package and the Prospectus (except to
the extent specified in opinion (xvi) above), on the basis of the foregoing, no facts have
come to the attention of such counsel that lead them to believe that:
(A) the Registration Statement, as of the most recent Effective Date, contained an
untrue statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein not misleading;
(B) the Pricing Disclosure Package, as of the Applicable Time, included an untrue
statement of a material fact or omitted to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; or
(C) the Prospectus, as of its date and as of the Delivery Date, included or includes an
untrue statement of a material fact or omitted or omits to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading,
it being understood that such counsel need not express any statement or belief with respect
to (i) the financial statements and related schedules, including the notes and schedules
thereto and the auditors report thereon, included or incorporated by reference in the
Registration Statement, the Pricing Disclosure Package and the Prospectus or (ii) any other
financial information included or incorporated by reference in the Registration Statement,
the Pricing Disclosure Package and the Prospectus.
In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon
certificates of officers and employees of GP LLC and the Plains Parties, to the extent they
deem appropriate, and information obtained from public officials, (B) assume that all
documents submitted to them as originals are authentic, that all copies submitted to them
conform to the originals thereof, and that the signatures on all documents examined by them
are genuine, (C) state that their opinion is limited to federal laws, the Delaware LP Act,
the Delaware LLC Act, the DGCL, the laws of the State of Texas and the laws of the State of
New York and (D) state that they express no opinion with respect
29
to (i) any permits to own or operate any real or personal property or (ii) state or
local taxes or tax statutes to which any of the limited partners of the Partnership or any
of the Plains Entities may be subject.
(d) The Representatives shall have received an opinion of Fulbright & Jaworski L.L.P.,
special counsel for the Plains Parties, dated the Delivery Date and addressed to the
Underwriters, to the effect that none of the offering, issuance or sale by the Issuers of
the Notes, the execution, delivery and performance of this Agreement by the Plains Parties,
the consummation of the transactions contemplated hereby, the execution, delivery and
performance of the Indenture by the Plains Parties that are parties thereto or the
consummation of the transactions contemplated thereby, results in a breach of, or
constitutes a default under (or an event which, with notice or lapse of time or both, would
constitute such an event) the provisions of any Credit Facility (as defined in Annex A to
such opinion, which shall include (1) the Revolving Agreement, (2) the Restated Facility,
(3) the Credit Agreement dated January 3, 2008 (as amended, the Plains AAP Facility), by
and among Plains AAP, the lenders party thereto and Citibank, N.A., as administrative agent,
(4) the PNG Facility and (5) the 364- Day Credit Agreement).
In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon
certificates of officers and employees of GP LLC and the Plains Parties, to the extent they
deem proper, and upon information obtained from public officials, (B) assume that all
documents submitted to them as originals are authentic, that all copies submitted to them
conform to the originals thereof, and that the signatures on all documents examined by them
are genuine and (C) state that such opinions are limited to the laws of the State of Texas,
excepting therefrom municipal and local ordinances and regulations.
In rendering such opinion, such counsel shall state that such opinion letter may be
relied upon only by the Underwriters and their counsel in connection with the transactions
contemplated by this Agreement and no other use or distribution of such opinion letter may
be made without such counsels prior written consent.
(e) The Representatives shall have received an opinion of Tim Moore, general counsel
for GP LLC, dated the Delivery Date and addressed to the Underwriters, to the effect that:
(i) None of (A) the offering, issuance and sale by the Issuers of the Notes or
the Subsidiary Guarantors of the Guarantees, (B) the execution, delivery and
performance by the Plains Parties of this Agreement, (C) the consummation of the
transactions contemplated by this Agreement or (D) the execution, delivery and
performance of the Indenture by the Plains Parties that are parties thereto or the
consummation of the transactions contemplated thereby (1) constitutes or will
constitute a breach or violation of, a change of control or a default (or an event
which, with notice or lapse of time or both, would constitute such an event) under
any bond, debenture, note or any other evidence of indebtedness, indenture or any
other material agreement or instrument known to such counsel to which any Plains
Party, GP Entity or PNG Entity is a party or by
30
which any one of them may be bound (other than any document or agreement filed
as an exhibit to the Registration Statement or an Incorporated Document or the
Plains AAP Facility) or (2) violates or will violate any statute, law or regulation
or any order, judgment, decree or injunction known to such counsel of any court or
governmental agency or body directed to any of the Plains Parties, the GP Entities
or the PNG Entities or any of their respective properties in a proceeding to which
any of them is a party, which would, in the case of either (1) or (2), reasonably be
expected to have a Material Adverse Effect or materially impair the ability of the
Plains Parties to consummate the transactions contemplated by this Agreement.
(ii) To the knowledge of such counsel, there is no legal or governmental
proceeding pending or threatened to which any of the Plains Parties or the
Non-Guarantor Subsidiaries is a party or to which any of their respective properties
is subject that is required to be disclosed in the Pricing Disclosure Package or the
Prospectus and is not so disclosed.
(iii) To the knowledge of such counsel, there are no agreements, contracts or
other documents to which any of the Plains Parties or the Non-Guarantor Subsidiaries
is a party or are bound that are required to be described in the Registration
Statement, the Pricing Disclosure Package or the Prospectus or to be filed as
exhibits to the Registration Statement or to the Incorporated Documents that are not
described or filed as required.
In addition, such counsel shall state that he has participated in discussions with
officers and other representatives of GP LLC and the Plains Parties and the independent
public accountants of the Partnership and the Underwriters representatives, at which the
contents of the Registration Statement, the Pricing Disclosure Package and the Prospectus
and related matters were discussed, and although such counsel has not independently
verified, is not passing on, and is not assuming any responsibility for the accuracy,
completeness or fairness of the statements contained in, the Registration Statement, the
Pricing Disclosure Package and the Prospectus, on the basis of the foregoing, no facts have
come to the attention of such counsel that lead him to believe that:
(A) the Registration Statement, as of the most recent Effective Date, contained an
untrue statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein not misleading;
(B) the Pricing Disclosure Package, as of the Applicable Time, included an untrue
statement of a material fact or omitted to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; or
(C) the Prospectus, as of its date and as of the Delivery Date, included or includes an
untrue statement of a material fact or omitted or omits to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading,
31
it being understood that such counsel need not express any statement or belief with respect
to (i) the financial statements and related schedules, including the notes and schedules
thereto and the auditors report thereon, included or incorporated by reference in the
Registration Statement, the Pricing Disclosure Package and the Prospectus or (ii) any other
financial or statistical information included or incorporated by reference in the
Registration Statement, the Pricing Disclosure Package and the Prospectus.
In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon
certificates of officers and employees of GP LLC and the Plains Parties, to the extent he
deems appropriate, and upon information obtained from public officials, (B) assume that all
documents submitted to him as originals are authentic, that all copies submitted to him
conform to the originals thereof, and that the signatures on all documents examined by him
are genuine, (C) state that such opinions are limited to federal laws and the Delaware LP
Act, the Delaware LLC Act, the DGCL and the laws of the State of Texas and (D) state that he
expresses no opinion with respect to either federal or state securities laws in clause (B)
of paragraph (i) above or state or local taxes or tax statutes.
(f) The Representatives shall have received an opinion of Bennett Jones LLP with
respect to the Province of Alberta and the federal laws of Canada, dated the Delivery Date
and addressed to the Underwriters, to the effect that:
(i) Each of the Canadian Subsidiary Guarantors (other than PMC NS, as to which
such counsel need not express an opinion) has been duly formed and is validly
existing in good standing as a corporation or unlimited liability company under the
laws of its jurisdiction of formation with all necessary corporate power and
authority to own or lease its properties, as the case may be, in all material
respects as described in the Pricing Disclosure Package and the Prospectus, and to
conduct its business as currently conducted and as proposed in the Pricing
Disclosure Package and the Prospectus to be conducted. Each of the Canadian
Subsidiary Guarantors (other than PMC NS, as to which such counsel need not express
an opinion) is duly registered extra-provincially for the transaction of business
and is in good standing under the laws of the jurisdictions set forth on Exhibit
A to this Agreement.
(ii) Plains Midstream Canada is the registered holder of 100% of the issued and
outstanding capital stock of Aurora Pipeline Company Ltd., a corporation
incorporated under the laws of Canada (Aurora); such share capital has been duly
authorized and validly issued in accordance with the Aurora Memorandum and Articles
of Association, as fully paid and nonassessable shares (except as such
nonassessability may be affected by the laws of the Province of Alberta).
(iii) Plains Marketing is the holder of 100% of the issued and outstanding
preferred shares of Plains Midstream Canada, and Plains Midstream Luxembourg,
S.a.r.l. is the registered holder of 100% of the issued and outstanding common stock
of Plains Midstream Canada; such share capital has
32
been duly authorized and validly issued in accordance with the Plains Midstream
Canada Articles of Incorporation, as fully paid and nonassessable shares (except as
such nonassessability may be affected by the laws of the Province of Alberta).
(iv) This Agreement has been duly authorized and validly executed and delivered
by each of Plains Midstream Canada and Aurora.
(v) The Indenture has been duly authorized, executed and delivered by each of
Plains Midstream Canada and Aurora. The laws of the Province of Alberta would
permit an action to be brought against PMC NS, Plains Midstream Canada or Aurora
before a court of competent jurisdiction in the Province of Alberta to enforce a
final and conclusive in personam judgment for a sum certain obtained in a New York
court relating to the Indenture, the Guarantees of the Canadian Subsidiary
Guarantors, or any of them that is not impeachable as void or voidable under the
internal laws of the State of New York, which action is predicated solely upon civil
liability, subject to certain exceptions set forth in such opinion.
(vi) No permit, consent, approval, authorization, order, registration, filing
or qualification of or with any court, governmental agency or body of the federal
government of Canada or the Province of Alberta is required for the offering,
issuance and sale by the Issuers of the Notes and the Guarantees or the execution,
delivery and performance of the Indenture by the Plains Parties.
(vii) None of the offering, issuance and sale by the Issuers of the Notes or
the Subsidiary Guarantors of the Guarantees, the execution, delivery and performance
of this Agreement by the Plains Parties, the consummation of the transactions
contemplated hereby, the execution, delivery and performance of the Indenture by the
Plains Parties that are parties thereto or the consummation of the transactions
contemplated thereby constitutes or will constitute a violation of the
Organizational Documents of the Canadian Subsidiary Guarantors (other than PMC NS,
as to which such counsel need not express an opinion) or any statute, law or
regulation of Canada or the Province of Alberta or, to the knowledge of such
counsel, any order, judgment, decree or injunction of any court or governmental
agency or body of Canada or the Province of Alberta directed to any of the Canadian
Subsidiary Guarantors or their properties in a proceeding to which any of them or
their property is a party.
(viii) To the knowledge of such counsel, each of the Canadian Subsidiary
Guarantors has such Permits issued by the appropriate federal or provincial or
regulatory authorities as are necessary to own or lease its properties and to
conduct its business as currently conducted and as proposed in the Pricing
Disclosure Package and the Prospectus to be conducted, subject to such
qualifications as may be set forth in the Pricing Disclosure Package and the
Prospectus, and except for such Permits which, if not obtained would not reasonably
be expected to, individually or in the aggregate, materially adversely
33
effect the operations conducted by the Canadian Subsidiary Guarantors, taken as
a whole.
In rendering such opinion, such counsel may (A) rely in respect of matters of fact upon
certificates of officers and employees of GP LLC and the Plains Parties, to the extent they
deem proper, and upon information obtained from public officials, (B) assume that all
documents submitted to them as originals are authentic, that all copies submitted to them
conform to the originals thereof, and that the signatures on all documents examined by them
are genuine, (C) state that such opinions are limited to federal laws of Canada and the laws
of the Province of Alberta, excepting therefrom municipal and local ordinances and
regulations and (D) state that they express no opinion with respect to state or local taxes
or tax statutes to which any of the limited partners of the Partnership or any of the Plains
Parties may be subject.
In rendering such opinion, such counsel shall state that (A) Vinson & Elkins L.L.P. is
thereby authorized to rely upon such opinion letter in connection with the transactions
contemplated by this Agreement as if such opinion letter were addressed and delivered to
them on the date thereof and (B) subject to the foregoing, such opinion letter may be relied
upon only by the Underwriters and their counsel in connection with the transactions
contemplated by this Agreement and no other use or distribution of such opinion letter may
be made without such counsels prior written consent.
(g) The Representatives shall have received an opinion of Baker Botts L.L.P., counsel
for the Underwriters, dated the Delivery Date and addressed to the Underwriters, with
respect to the offering, issuance and sale by the Issuers of the Notes and the Subsidiary
Guarantors of the Guarantees, the Indenture, the Registration Statement, the Pricing
Disclosure Package, the Prospectus (together with any amendment or supplement thereto) and
other related matters the Underwriters may reasonably require.
(h) At the time of the execution of this Agreement, the Representatives shall have
received from PricewaterhouseCoopers LLP, independent public accountants, letters dated such
date, in form and substance satisfactory to the Representatives, together with signed or
reproduced copies of such letters for each of the other Underwriters, containing statements
and information of the type ordinarily included in accountants comfort letters to
underwriters with respect to the financial statements and certain financial information
contained in the Registration Statement, the Pricing Disclosure Package and the Prospectus;
provided that the cut-off date for the procedures performed by such accountants and
described in such letters shall be a date not more than five days prior to the date of such
letter.
(i) On the Delivery Date, the Representatives shall have received from
PricewaterhouseCoopers LLP a letter, dated as of the Delivery Date, to the effect that they
reaffirm the statements made in the letter furnished pursuant to paragraph (h) of this
Section 7, except that the date referred to in the proviso in Section 7(h) hereof shall be a
date not more than three business days prior to the Delivery Date.
34
(j) The Partnership shall have furnished to the Representatives at the Delivery Date a
certificate of the Partnership, signed on behalf of the Partnership by the President or any
Vice President and the Chief Financial Officer of GP LLC, dated the Delivery Date, to the
effect that the signers of such certificate have examined the Registration Statement, the
Pricing Disclosure Package, the Prospectus and any amendment or supplement thereto, and this
Agreement and that:
(A) the representations and warranties of the Partnership in this Agreement are
true and correct on and as of the Delivery Date with the same effect as if made on
the Delivery Date and the Partnership has complied in all material respects with all
the agreements and satisfied all the conditions on its part to be performed or
satisfied at or prior to the Delivery Date;
(B) no stop order suspending the effectiveness of the Registration Statement or
any notice objecting to its use has been issued and no proceedings for that purpose
have been instituted or, to the Partnerships knowledge, threatened; and
(C) (i) the Registration Statement, as of the Effective Date, (ii) the
Prospectus, as of its date and on the Delivery Date, and (iii) the Pricing
Disclosure Package, as of the Applicable Time, did not and do not contain any untrue
statement of a material fact and did not and do not omit to state a material fact
required to be stated therein or necessary to make the statement therein (except in
the case of the Registration Statement, in the light of the circumstances under
which they were made) not misleading.
(k) Plains Marketing GP Inc., a Delaware corporation (GP Inc.), shall have furnished
to the Representatives at the Delivery Date a certificate of GP Inc., signed on behalf of GP
Inc. by the President or any Vice President of GP Inc., dated the Delivery Date, to the
effect that the signers of such certificate have examined the Registration Statement, the
Pricing Disclosure Package, the Prospectus and any amendment or supplement thereto, and this
Agreement and that the representations and warranties of each of GP Inc., Plains Marketing,
Plains Pipeline, L.P., a Texas limited partnership (Plains Pipeline), Plains Southcap LLC,
a Delaware limited liability company (Plains Southcap), PMC LLC, Rancho LPG Holdings LLC,
a Delaware limited liability company (Rancho LLC), Plains LPG Services GP LLC, a Delaware
limited liability company (LPG LLC), Plains LPG Services, L.P., a Delaware limited
partnership (LPG Services LP), PICSCO LLC, a Delaware limited liability company
(PICSCO), Lone Star, Plains Midstream GP LLC, a Delaware limited liability company
(Plains Midstream GP), and Plains Products Terminals LLC, a Delaware limited liability
company (Plains Products), in this Agreement are true and correct on and as of the
Delivery Date with the same effect as if made on the Delivery Date and each such entity has
complied in all material respects with all the agreements and satisfied all the conditions
on its part to be performed or satisfied at or prior to the Delivery Date.
35
(l) PAA Finance shall have furnished to the Representatives at the Delivery Date a
certificate of PAA Finance, signed on behalf of PAA Finance by the President or any Vice
President of PAA Finance, dated the Delivery Date, to the effect that the signers of such
certificate have examined the Registration Statement, the Pricing Disclosure Package, the
Prospectus and any amendment or supplement thereto, and this Agreement and that the
representations and warranties of PAA Finance contained in this Agreement are true and
correct on and as of the Delivery Date with the same effect as if made on the Delivery Date
and PAA Finance has complied in all material respects with all the agreements and satisfied
all the conditions on its part to be performed or satisfied at or prior to the Delivery
Date.
(m) Pacific Energy Group LLC, a Delaware limited liability company (Pacific Energy
Group), shall have furnished to the Representatives at the Delivery Date a certificate of
Pacific Energy Group, signed on behalf of Pacific Energy Group by the President or any Vice
President of Pacific Energy Group, dated the Delivery Date, to the effect that the signers
of such certificate have examined the Registration Statement, the Pricing Disclosure
Package, the Prospectus and any amendment or supplement thereto, and this Agreement and that
the representations and warranties of each of Pacific Energy Group, Pacific L.A. Marine
Terminal LLC, a Delaware limited liability company (Pacific LA), and Rocky Mountain
Pipeline System LLC, a Delaware limited liability company (Rocky Mountain), contained in
this Agreement are true and correct on and as of the Delivery Date with the same effect as
if made on the Delivery Date and each such entity has complied in all material respects with
all the agreements and satisfied all the conditions on its part to be performed or satisfied
at or prior to the Delivery Date.
(n) PMC NS shall have furnished to the Representatives at the Delivery Date a
certificate of PMC NS, signed on behalf of PNC NS by the President or any Vice President of
PMC NS, dated the Delivery Date, to the effect that the signers of such certificate have
examined the Registration Statement, the Pricing Disclosure Package, the Prospectus and any
amendment or supplement thereto, and this Agreement and that the representations and
warranties of PMC NS contained in this Agreement are true and correct on and as of the
Delivery Date with the same effect as if made on the Delivery Date and each such entity has
complied in all material respects with all the agreements and satisfied all the conditions
on its part to be performed or satisfied at or prior to the Delivery Date.
(o) Plains Midstream Canada shall have furnished to the Representatives at the Delivery
Date a certificate of Plains Midstream Canada, signed on behalf of Plains Midstream Canada
by the President or any Vice President of Plains Midstream Canada, dated the Delivery Date,
to the effect that the signers of such certificate have examined the Registration Statement,
the Pricing Disclosure Package, the Prospectus and any amendment or supplement thereto, and
this Agreement and that the representations and warranties of Plains Midstream Canada
contained in this Agreement are true and correct on and as of the Delivery Date with the
same effect as if made on the Delivery Date and Plains Midstream Canada has complied in all
material respects with all the agreements and satisfied all the conditions on its part to be
performed or satisfied at or prior to the Delivery Date.
36
(p) Aurora shall have furnished to the Representatives at the Delivery Date a
certificate of Aurora, signed on behalf of Aurora by the President or any Vice President of
Aurora, dated the Delivery Date, to the effect that the representations and warranties of
Aurora contained in this Agreement are true and correct on and as of the Delivery Date with
the same effect as if made on the Delivery Date and Aurora has complied in all material
respects with all the agreements and satisfied all the conditions on its part to be
performed or satisfied at or prior to the Delivery Date.
(q) At the Delivery Date, the Notes shall be rated at least Baa3 by Moodys Investors
Services, Inc. (Moodys) and BBB- by Standard & Poors Ratings Services, a division of
The McGraw-Hill Companies, Inc. (S&P), and the Issuers shall have delivered to the
Underwriters a letter dated near the Delivery Date, from each such rating agency, or other
evidence satisfactory to the Underwriters, confirming that the Notes have such ratings; and
since the date of this Agreement, there shall not have occurred a downgrading in the rating
assigned to (A) the Notes below Baa3 by Moodys and BBB- by S&P or (B) any of the
Issuers other debt securities by any nationally recognized statistical rating agency, as
that term is defined by the Commission for purposes of Rule 436(g)(2) under the Securities
Act, and no such organization shall have publicly announced that it has under surveillance
or review, with possible negative implications, its ratings of the Notes or any of the
Issuers other debt securities.
(r) The Issuers, the Subsidiary Guarantors and the Trustee shall have executed and
delivered the Nineteenth Supplemental Indenture, and the Issuers shall have executed and
delivered the Global Note.
(s) At the time of the execution of this Agreement, the Representatives shall have
received from the Partnership a certificate substantially in the form of Exhibit B
hereto and signed by the chief financial officer of the General Partner.
All such opinions, certificates, letters and other documents referred to in this Section 7
will be in compliance with the provisions hereof only if they are reasonably satisfactory in form
and substance to the Representatives and counsel for the Underwriters. The Issuers shall furnish
to the Underwriters conformed copies of such opinions, certificates, letters and other documents in
such number as they shall reasonably request.
If any of the conditions specified in this Section 7 shall not have been fulfilled in all
material respects when and as provided in this Agreement, or if any of the opinions and
certificates mentioned above or elsewhere in this Agreement shall not be in all material respects
reasonably satisfactory in form and substance to the Underwriters and counsel for the Underwriters,
this Agreement and all obligations of the Underwriters hereunder may be cancelled at, or at any
time prior to, the Delivery Date by the Underwriters. Notice of such cancellation shall be given
to the Issuers in writing or by telephone or facsimile confirmed in writing.
8. Expenses. The Issuers agree to pay the following costs and expenses and all other costs
and expenses incident to the performance by it of its obligations hereunder: (i) the preparation,
37
printing or reproduction, and filing with the Commission of the Registration Statement (including
financial statements and exhibits thereto), any Preliminary Prospectus, the Prospectus, any Issuer
Free Writing Prospectus and each amendment or supplement to any of them; (ii) the printing (or
reproduction) and delivery (including postage, air freight charges and charges for counting and
packaging) of such copies of the Registration Statement, any Preliminary Prospectus, any Issuer
Free Writing Prospectus, the Prospectus, the Incorporated Documents and all amendments or
supplements to any of them as may be reasonably requested for use in connection with the offering
and sale of the Notes; (iii) the preparation, printing, authentication, issuance and delivery of
certificates for the Notes, including any stamp taxes in connection with the original issuance and
sale of the Notes; (iv) the printing (or reproduction) and delivery of this Agreement, the
preliminary and supplemental Blue Sky Memoranda, and all other agreements or documents printed (or
reproduced) and delivered in connection with the offering of the Notes; (v) any applicable listing
or other similar fees; (vi) the registration or qualification of the Notes for offer and sale under
the securities or Blue Sky laws of the several states as provided in Section 5(g) hereof (including
the reasonable fees, expenses and disbursements of counsel for the Underwriters relating to the
preparation, printing or reproduction, and delivery of the preliminary and supplemental Blue Sky
Memoranda and such registration and qualification); (vii) any filing fees in connection with any
filings required to be made with the FINRA; (viii) the transportation and other expenses incurred
by or on behalf of officers and employees of GP LLC or the Issuers in connection with presentations
to prospective purchasers of the Notes; (ix) the fees and expenses of the Partnerships accountants
and the fees and expenses of counsel (including local and special counsel) for the Issuers and
Guarantors; (x) any fees charged by rating agencies for rating the Notes; and (xi) the fees and
expenses of the Trustee and paying agent (including related fees and expenses of any counsel for
such parties).
It is understood, however, that except as otherwise provided in this Section 8 or Section 5(j)
hereof, the Underwriters will pay all of their own costs and expenses, including the fees of their
counsel, transfer taxes on any resale of the Notes by any Underwriter, any advertising expenses
connected with any offers they may make and the transportation and other expenses incurred by the
Underwriters on their own behalf in connection with presentations to prospective purchasers of the
Notes.
9. Default by an Underwriter. If any one or more of the Underwriters shall fail or refuse
to purchase Notes that it or they are obligated to purchase hereunder on the Delivery Date, and the
aggregate principal amount of Notes that such defaulting Underwriter or Underwriters are obligated
but fail or refuse to purchase is not more than one-tenth of the aggregate principal amount of the
Notes that the Underwriters are obligated to purchase on the Delivery Date, each non-defaulting
Underwriter shall be obligated, severally, in the proportion that the principal amount of Notes set
forth opposite its name in Schedule I hereto bears to the aggregate principal amount of
Notes set forth opposite the names of all non-defaulting Underwriters or in such other proportion
as the Representatives may specify in accordance with the Agreement Among Underwriters of Wells
Fargo Securities, LLC to purchase the Notes that such defaulting Underwriter or Underwriters are
obligated, but fail or refuse, to purchase. If any one or more of the Underwriters shall fail or
refuse to purchase Notes that it or they are obligated to purchase on the Delivery Date and the
aggregate principal amount of Notes with respect to which such default occurs is more than
one-tenth of the aggregate principal amount of Notes that the Underwriters are obligated to
purchase on the Delivery Date and arrangements satisfactory to the
38
Representatives and the Issuers for the purchase of such Notes by one or more non-defaulting
Underwriters or other party or parties approved by the Representatives and the Issuers are not made
within 36 hours after such default, this Agreement will terminate without liability on the part of
any party hereto (other than any defaulting Underwriter). In any such case that does not result in
termination of this Agreement, either the Representatives or the Issuers shall have the right to
postpone the Delivery Date, but in no event for longer than seven days, in order that the required
changes, if any, in the Registration Statement and the Prospectus or any other documents or
arrangements may be effected. Any action taken under this paragraph shall not relieve any
defaulting Underwriter from liability in respect of any such default of any such Underwriter under
this Agreement. The term Underwriter as used in this Agreement includes, for all purposes of
this Agreement, any party not listed in Schedule I hereto who, with the Representatives
approval and the approval of the Issuers, purchases Notes that a defaulting Underwriter is
obligated, but fails or refuses, to purchase.
Any notice under this Section 9 may be given by telegram, telecopy or telephone but shall be
subsequently confirmed by letter.
10. Termination of Agreement. This Agreement shall be subject to termination in the
Representatives absolute discretion, without liability on the part of any Underwriter to any
Plains Party, by notice to the Issuers prior to delivery of and payment for the Notes, if at any
time prior to such time (i) trading in the Partnerships Common Units shall have been suspended by
the Commission or the NYSE or trading in securities generally on the New York Stock Exchange, the
American Stock Exchange or the Nasdaq National Market shall have been suspended or limited or
minimum prices shall have been established; (ii) a banking moratorium shall have been declared
either by federal or New York or Texas state authorities or a material disruption in commercial
banking or securities settlement or clearance services in the United States or with respect to
Euroclear S.A./N.V. and Clearstream Banking, société anonyme, shall have occurred; or (iii) there
shall have occurred any outbreak or escalation of hostilities or acts of terrorism, declaration by
the United States of a national emergency or war or other calamity or crisis or any change in
financial, political or economic conditions in the United States or elsewhere, the effect of which
on financial markets is such as to make it, in the sole judgment of the Underwriters, impractical
or inadvisable to proceed with the offering or delivery of the Notes as contemplated by the
Prospectus (exclusive of any amendment or supplement thereto). Notice of such termination may be
given to the Issuers by telegram, telecopy or telephone and shall be subsequently confirmed by
letter.
11. Notice; Successors. Except as otherwise provided in Sections 5, 9 and 10 hereof, all
communications hereunder will be in writing and effective only on receipt, and, if sent to the
Underwriters, will be mailed, delivered or telefaxed to the Representatives c/o Wells Fargo
Securities, LLC, 301 S. College Street, 6th Floor, Charlotte, NC 28288 Attention: Transaction
Management, Facsimile: (704) 383-9165; or, if sent to any of the Plains Parties, will be mailed,
delivered or telefaxed to (713) 646-4313 and confirmed to it at 333 Clay St., Suite 1600, Houston,
Texas 77002, Attention: Tim Moore.
This Agreement has been and is made solely for the benefit of the several Underwriters, the
Plains Parties, their directors and officers, and the other controlling persons referred to in
Section 6 hereof and their respective successors and assigns, to the extent provided
39
herein, and no other person shall acquire or have any right under or by virtue of this
Agreement. Neither the term successor nor the term successors and assigns as used in this
Agreement shall include a purchaser from any Underwriter of any of the Notes in his status as such
purchaser.
12. Information Furnished by the Underwriters. The statements set forth in the first
paragraph under Underwriting Commissions and discounts, in the paragraph under Underwriting
Stabilization and short positions in the most recent Preliminary Prospectus and the Prospectus
constitute the only information furnished by or on behalf of the Underwriters through the
Representatives as such information is referred to in Sections 1(c), 1(d), 1(f), 1(g), 5(p), 6(a)
and 6(c) hereof.
13. Research Analyst Independence. The Plains Parties acknowledge that the Underwriters
research analysts and research departments are required to be independent from their respective
investment banking divisions and are subject to certain regulations and internal policies, and that
such Underwriters research analysts may hold views and make statements or investment
recommendations and/or publish research reports with respect to the Issuers and/or the offering
that differ from the views of their respective investment banking divisions. The Plains Parties
hereby waive and release, to the fullest extent permitted by law, any claims that the Plains
Parties may have against the Underwriters with respect to any conflict of interest that may arise
from the fact that the views expressed by their independent research analysts and research
departments may be different from or inconsistent with the views or advice communicated to the
Plains Parties by such Underwriters investment banking divisions. The Plains Parties acknowledge
that each of the Underwriters is a full service securities firm and as such from time to time,
subject to applicable securities laws, may effect transactions for its own account or the account
of its customers and hold long or short positions in debt or equity securities of the companies
that may be the subject of the transactions contemplated by this Agreement.
14. Integration. This Agreement supersedes all prior agreements and understandings
(whether written or oral) between the Plains Parties and the Underwriters, or any of them, with
respect to the subject matter hereof.
15. Headings. The Section headings used herein are for convenience only and shall not
affect the construction hereof.
16. Effective Date of Agreement. This Agreement shall become effective upon the execution
and delivery hereof by the parties hereto.
17. No Fiduciary Duty. The Plains Parties acknowledge and agree that in connection with
this offering, sale of the Notes or any other services the Underwriters may be deemed to be
providing hereunder, notwithstanding any preexisting relationship, advisory or otherwise, between
the parties or any oral representations or assurances previously or subsequently made by the
Underwriters: (i) no fiduciary or agency relationship between the Plains Parties and any other
person, on the one hand, and the Underwriters, on the other hand, exists; (ii) the Underwriters are
not acting as advisors, expert or otherwise, to any of the Plains Parties, including, without
limitation, with respect to the determination of the public offering price of the Notes, and such
relationship between the Plains Parties, on the one hand, and the Underwriters,
40
on the other, is entirely and solely commercial, based on arms-length negotiations; (iii) any
duties and obligations that the Underwriters may have to the Plains Parties shall be limited to
those duties and obligations specifically stated herein; and (iv) the Underwriters and their
respective affiliates may have interests that differ from those of the Plains Parties. The Plains
Parties hereby waive any claims that they may have against the Underwriters with respect to any
breach of fiduciary duty in connection with this offering.
18. Applicable Law; Counterparts. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made and to be performed
within the State of New York. This Agreement may be signed in various counterparts that together
constitute one and the same instrument. If signed in counterparts, this Agreement shall not become
effective unless at least one counterpart hereof shall have been executed and delivered on behalf
of each party hereto.
[Signature Pages Follow]
41
Please confirm that the foregoing correctly sets forth the agreement among the Plains
Parties and the Underwriters.
Very truly yours, PLAINS ALL AMERICAN PIPELINE, L.P. By: PAA GP LLC its General Partner By: PLAINS AAP, L.P. its Sole Member By: PLAINS ALL AMERICAN GP LLC its General Partner |
||||
By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PAA FINANCE CORP. |
||||
By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PAA Signature Page to Underwriting Agreement
1 of 7
PLAINS MARKETING GP INC. |
||||
By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PLAINS MARKETING, L.P. By: PLAINS MARKETING GP INC. its General Partner |
||||
By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PLAINS PIPELINE, L.P. By: PLAINS MARKETING GP INC. its General Partner |
||||
By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PLAINS MARKETING CANADA LLC By: PLAINS MARKETING, L.P. its Sole Member By: PLAINS MARKETING GP INC. its General Partner |
||||
By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PAA Signature Page to Underwriting Agreement
2 of 7
PLAINS LPG SERVICES GP LLC By: PLAINS MARKETING, L.P. its Sole Member By: PLAINS MARKETING GP INC. its General Partner |
||||
By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PLAINS SOUTHCAP LLC By: PLAINS PIPELINE, L.P. its Sole Member By: PLAINS MARKETING GP INC. its General Partner |
||||
By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PICSCO LLC By: PLAINS MARKETING, L.P. its Sole Member By: PLAINS MARKETING GP INC. its General Partner |
||||
By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PAA Signature Page to Underwriting Agreement
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PLAINS MIDSTREAM GP LLC By: PLAINS MARKETING, L.P. its Sole Member By: PLAINS MARKETING GP INC. its General Partner |
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By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PLAINS LPG SERVICES, L.P. By: PLAINS LPG SERVICES GP LLC its General Partner By: PLAINS MARKETING, L.P. its Sole Member By: PLAINS MARKETING GP INC. its General Partner |
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By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PLAINS PRODUCTS TERMINALS LLC By: PLAINS MARKETING, L.P. its Sole Member By: PLAINS MARKETING GP INC. its General Partner |
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By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PAA Signature Page to Underwriting Agreement
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RANCHO LPG HOLDINGS LLC By: PLAINS LPG SERVICES, L.P. its Sole Member By: PLAINS LPG SERVICES GP LLC its General Partner By: PLAINS MARKETING, L.P. its Sole Member By: PLAINS MARKETING GP INC. its General Partner |
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By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
LONE STAR TRUCKING, LLC By: PLAINS LPG SERVICES, L.P. its Sole Member By: PLAINS LPG SERVICES GP LLC its General Partner By: PLAINS MARKETING, L.P. its Sole Member By: PLAINS MARKETING GP INC. its General Partner |
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By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PAA Signature Page to Underwriting Agreement
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PACIFIC ENERGY GROUP LLC |
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By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
PACIFIC L.A. MARINE TERMINAL LLC By: PACIFIC ENERGY GROUP LLC its Sole Member |
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By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
ROCKY MOUNTAIN PIPELINE SYSTEM LLC By: PACIFIC ENERGY GROUP LLC its Sole Member |
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By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Senior Vice President and Chief Financial Officer | |||
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PLAINS MIDSTREAM CANADA ULC |
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By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Vice President Finance | |||
AURORA PIPELINE COMPANY LTD. |
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By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Vice President Finance | |||
PMC (NOVA SCOTIA) COMPANY |
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By: | /s/ Al Swanson | |||
Name: | Al Swanson | |||
Title: | Vice President Finance | |||
PAA Signature Page to Underwriting Agreement
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The foregoing Agreement is hereby confirmed and accepted by the Underwriters as of the date first above written. WELLS FARGO SECURITIES, LLC J.P. MORGAN SECURITIES LLC SUNTRUST ROBINSON HUMPHREY, INC. For themselves and as Representatives of the several Underwriters named in Schedule I hereto By: Wells Fargo Securities, LLC |
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By: | /s/ Carolyn Hurley | |||
Name: | Carolyn Hurley | |||
Title: | Director | |||
By: J.P. Morgan Securities LLC |
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By: | /s/ Robert Bottamedi | |||
Name: | Robert Bottamedi | |||
Title: | Vice President | |||
By: SunTrust Robinson Humphrey, Inc. |
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By: | /s/ Christopher S. Grumboski | |||
Name: | Christopher S. Grumboski | |||
Title: | Director | |||
Underwriters Signature Page to Underwriting Agreement
SCHEDULE I
Principal Amount of | |||||
Underwriters | Notes to be Purchased | ||||
Wells Fargo Securities, LLC |
$ | 108,000,000 | |||
J.P. Morgan Securities LLC |
108,000,000 | ||||
SunTrust Robinson Humphrey, Inc. |
108,000,000 | ||||
DnB NOR Markets, Inc. |
78,000,000 | ||||
Merrill Lync |
h, Pierce, Fenner & Smith Incorporated |
78,000,000 | |||
BMO Capital Markets Corp. |
15,000,000 | ||||
Daiwa Capital Markets America Inc. |
15,000,000 | ||||
ING Financial Markets LLC |
15,000,000 | ||||
Mizuho Securities USA Inc. |
15,000,000 | ||||
Morgan Stanley & Co. Incorporated |
15,000,000 | ||||
Scotia Capital (USA) Inc. |
15,000,000 | ||||
SG Americas Securities, LLC |
15,000,000 | ||||
U.S. Bancorp Investments, Inc. |
15,000,000 | ||||
Total |
$ | 600,000,000 |
Schedule I to Underwriting Agreement
SCHEDULE II
Filed
Pursuant to Rule 433
Registration No. 333-162475
January 5, 2011
Registration No. 333-162475
January 5, 2011
Final Term Sheet
$600,000,000 5.000% Senior Notes due 2021
Issuers: | Plains All American Pipeline, L.P. and PAA Finance Corp. |
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Guarantee: | Unconditionally guaranteed by certain subsidiaries of
Plains All American Pipeline, L.P. |
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Security Type: | Senior Unsecured Notes |
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Legal Format: | SEC Registered Notes |
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Pricing Date: | January 5, 2011 |
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Settlement Date (T+7): | January 14, 2011 |
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Maturity Date: | February 1, 2021 |
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Principal Amount: | $600,000,000 |
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Benchmark: | UST 2.625% due November 15, 2020 |
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Benchmark Price / Yield: | 93-02 / 3.461% |
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Spread to Benchmark: | + 160 bps |
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Yield to Maturity: | 5.061% |
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Coupon: | 5.000% |
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Public Offering Price: | 99.521% |
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Net Proceeds (after estimated expenses) to Company: | $592 million |
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Optional Redemption: | We may redeem the Notes, in whole or in part, at any
time and from time to time prior to maturity. If we
redeem the Notes before a date that is 90 days prior to
their maturity date, the Notes may be redeemed at a
price equal to the greater of (i) 100% of the principal
amount of the Notes to be redeemed or (ii) the sum of
the present values of the remaining scheduled payments
of principal of and interest on the Notes to be
redeemed, discounted to the redemption date on a
semiannual basis at the Adjusted Treasury Rate (as
defined in the prospectus supplement) plus 25 basis
points, together with accrued interest to the date of
redemption. If we redeem the Notes on or after a date
that is 90 days prior to their maturity date, the
redemption price will equal 100% of the principal
amount of the Notes to be redeemed plus accrued
interest to the redemption date. |
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Interest Payment Dates: | February 1 and August 1, beginning August 1, 2011 |
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CUSIP / ISIN: | 72650R AY8 / US72650RAY80 |
Schedule II to Underwriting Agreement
Joint Book-Running Managers:
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J.P. Morgan Securities LLC SunTrust Robinson Humphrey, Inc. |
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Wells Fargo Securities, LLC | |||
Merrill Lync | h, Pierce, Fenner & Smith Incorporated |
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DnB NOR Markets, Inc. | |||
Co-Managers:
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BMO Capital Markets Corp. Daiwa Capital Markets America Inc. ING Financial Markets LLC Mizuho Securities USA Inc. Morgan Stanley & Co. Incorporated Scotia Capital (USA) Inc. SG Americas Securities, LLC U.S. Bancorp Investments, Inc. |
The issuers have filed a registration statement (including a base prospectus) and a prospectus
supplement with the U.S. Securities and Exchange Commission (SEC) for the offering to which this
communication relates. Before you invest, you should read the prospectus supplement for this
offering, the issuers prospectus in that registration statement and any other documents the
issuers have filed with the SEC for more complete information about the issuers and this offering.
You may get these documents for free by visiting EDGAR on the SEC web site at
http://www.sec.gov. Alternatively, the issuers, any underwriter or any dealer participating
in the offering will arrange to send you the prospectus supplement and prospectus if you request it
by calling J.P. Morgan Securities LLC at (212) 834-4533, SunTrust Robinson Humphrey, Inc. toll-free
at (800) 685-4786 or Wells Fargo Securities, LLC toll-free at (800) 326-5897.
Schedule II to Underwriting Agreement
SCHEDULE III
Domestic Subsidiary Guarantors
Plains Marketing GP Inc.
Plains Marketing, L.P.
Plains Pipeline, L.P.
Pacific Energy Group LLC
Pacific L.A. Marine Terminal LLC
Rocky Mountain Pipeline System LLC
Plains Products Terminals LLC
Plains Southcap LLC
Plains Marketing Canada LLC
Plains LPG Services GP LLC
PICSCO LLC
Plains LPG Services, L.P.
Plains Midstream GP LLC
Lone Star Trucking, LLC
Rancho LPG Holdings LLC
Schedule III to Underwriting Agreement
SCHEDULE IV
Canadian Subsidiary Guarantors
Aurora Pipeline Company Ltd.
Plains Midstream Canada ULC
PMC (Nova Scotia) Company
Schedule IV to Underwriting Agreement
SCHEDULE V
PNG Entities
PAA Natural Gas Storage, L.P.
PNGS GP LLC
PAA Natural Gas Storage, LLC
Bluewater Natural Gas Holding, LLC
Bluewater Gas Storage, LLC
BGS Kimball Gas Storage LLC
PNG Marketing, LLC
Pine Prairie Energy Center, LLC
PPEC Bondholder, LLC
Schedule V to Underwriting Agreement
SCHEDULE VI
Other Subsidiaries
CDM Max, LLC
Pacific Energy GP, LP
Pacific Energy Management LLC
Pacific Pipeline System LLC
Plains West Coast Terminals LLC
Plains Marketing Bondholder LLC
SLC Pipeline LLC
Southcap Pipeline Company
PAA/Vulcan Gas Storage, LLC
PAA Midstream LLC
PAA Luxembourg S.a.r.l.
Plains Midstream Luxembourg S.a.r.l.
Nexen Pipeline U.S.A. LLC
Nexen Marketing U.S.A. Inc.
Schedule VI to Underwriting Agreement
EXHIBIT A
Entity | Jurisdiction in which registered or qualified | |
Plains All American Pipeline, L.P.
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Texas | |
PAA GP LLC
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Texas | |
Plains AAP, L.P.
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Texas | |
Plains All American GP LLC
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California, Illinois, Louisiana, Oklahoma, Texas | |
Plains Marketing GP Inc.
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California, Illinois, Louisiana, Oklahoma, Texas | |
Plains Marketing, L.P.
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California, Illinois, Louisiana, Oklahoma | |
Plains Pipeline, L.P.
|
California, Illinois, Louisiana, Oklahoma | |
Pacific Energy Group LLC
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California | |
PAA Finance Corp.
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Texas | |
Pacific L.A. Marine Terminal LLC
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None | |
Rocky Mountain Pipeline System LLC
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Utah | |
Plains Products Terminals LLC
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California | |
Plains Southcap LLC
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None | |
Plains LPG Services GP LLC
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Illinois, Texas | |
PICSCO LLC
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Louisiana, Texas | |
Plains LPG Services, L.P.
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California, Illinois, Oklahoma, Texas | |
Rancho LPG Holdings LLC
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California, Texas | |
Aurora Pipeline Company Ltd.
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Alberta | |
Plains Midstream Canada ULC
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Registrations/qualifications in process for: British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario and Saskatchewan | |
PMC (Nova Scotia) Company
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None | |
PAA Natural Gas Storage, L.P.
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Texas | |
PNGS GP LLC
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Louisiana, Michigan, Texas | |
PAA Natural Gas Storage, LLC
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Louisiana, Michigan | |
Bluewater Natural Gas Holding, LLC
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Michigan | |
Bluewater Gas Storage, LLC
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Michigan |
Exhibit A to Underwriting Agreement
Entity | Jurisdiction in which registered or qualified | |
BGS Kimball Gas Storage LLC
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Michigan | |
Pine Prairie Energy Center, LLC
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Louisiana | |
PPEC Bondholder, LLC
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Louisiana | |
PNG Marketing, LLC
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None |
A-2
Exhibit B
CHIEF FINANCIAL OFFICERS CERTIFICATE
January 5, 2011
The undersigned, in his capacity as the Chief Financial Officer of PAA GP LLC, a Delaware
limited liability company and the general partner of Plains All American Pipeline, L.P., a Delaware
limited partnership (the Partnership), does hereby certify that he is familiar with the
accounting, operations and record systems of the Partnership and that, to his knowledge after
reasonable investigation, there has not been any material adverse change in the financial position,
results of operations, cash flows or working capital of the Partnership since September 30, 2010.
In addition as of the date of this certificate, the total debt of the Partnership is approximately
$5.9 billion.
Capitalized terms used but not defined herein have the meanings assigned to them in the
Underwriting Agreement dated as of the date hereof by and among the Partnership, PAA Finance Corp.
and the subsidiary guarantors named therein and Wells Fargo Securities, LLC, J.P. Morgan Securities
LLC and SunTrust Robinson Humphrey, Inc., as the representatives of the Underwriters.
This certificate is to assist the Underwriters in conducting and documenting their
investigation of the affairs of the Partnership in connection with the offering of the Notes
covered by the Registration Statement, the Pricing Disclosure Package and the Prospectus.
[Signature Page Follows]
Exhibit B to Underwriting Agreement
IN WITNESS WHEREOF, the undersigned has hereunto affixed his signature as of the date first
written above.
Al Swanson Senior Vice President and Chief Financial Officer |
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B-2