Plains All American Pipeline LP said Thursday that it has begun a secondary public offering of 7.5 million common units that represent limited partner interests owned by Vulcan Energy Corp.
The partnership, which transports and stores crude oil and petroleum products, also said the underwriters are expected to be granted a 30-day option to purchase up to an additional 1.125 million common units to cover excess demand.
The partnership will not receive any proceeds from the offering and the number of its outstanding common units will not change.
Citigroup, Barclays Capital, BofA Merrill Lynch, JPMorgan and UBS Investment Bank will act as joint book-running managers of the offering.
Units of Plains All American Pipeline rose 45 cents to close the regular session at $63.18. In aftermarket trading, the units fell $2.15, or 3.4 percent, to $61.03.