20 Nov 2006listing compliance notice● NeutralMajor
PACIFIC ENERGY PARTNERS LP's exchange filed to remove a class of its securities from listing.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
16 Nov 2006securities registration● Neutral
PACIFIC ENERGY PARTNERS LP amended an already-effective registration statement.
15 Nov 2006substantial holder notice● Neutral
Lehman Brothers Holdings Inc, Lehman Brothers Merchant Banking Associates III LLC, Lehman Brothers Inc, Lehman Brothers Private Equity Advisers LLC, Lehman Brothers Merchant Banking Associates III, L.P, LBMB Partners AIV I L.P, LBMB Fund AIV I L.P, LBMB Capital Partners V AIV I L.P, LBMB AIV II L.P, Lehman Sidecar I, LLC, LB I Group Inc, Lehman Brothers Diversified Private Equity Fund, LB Pacific GP, LLC, LB Pacific, LP reported no remaining PACIFIC ENERGY PARTNERS LP shareholding in its periodic institutional filing.
15 Nov 2006listing compliance notice▼ BadMajor
PACIFIC ENERGY PARTNERS LP terminated the registration of a class of securities, ending its reporting obligation for them.
29 Sept 2006business combination● NeutralMajor
The partnership filed its definitive joint proxy statement/prospectus (dated 29 September 2006, first mailed about 2 October) for the Plains All American (PAA) merger, with special unitholder meetings set for 9 November 2006. Each Pacific common unitholder other than LB Pacific would get 0.77 PAA common units per Pacific unit, and Pacific's general partner and limited partner interests would be extinguished, with Pacific merged into PAA. Approval needs a majority of PAA common units, a majority of Pacific common units (excluding those held by LB Pacific), and a majority of Pacific subordinated units (all held by LB Pacific), each voting separately; abstentions and broker non-votes count as votes against. Pacific's conflicts committee and board unanimously recommend approval, and the filing says holders are generally expected not to recognise US federal tax gain or loss on the exchange. This moves the June 2006 merger from signing to the unitholder vote; the merger has not closed.
20 July 2006business combination● Neutral
On 19 July 2006 the partnership and PAA amended the merger agreement so that retention benefits for specified employees are paid by PAA within 30 days after the merger takes effect, rather than before. This is a minor timing change; the exchange ratio and other terms are not changed in this filing.
15 June 2006material agreement● Neutral
Tied to the PAA merger, the board approved cash bonuses for all employees before the merger takes effect (prorated 2006 target if it closes in 2006; 2006 target plus prorated 2007 if it closes in 2007). It also set up a severance plan effective only on closing, with 6 to 12 months of pay for officers terminated without cause within 12 months after closing and 24 months for the Vice Chairman. A conflicts committee (John Linehan, chairman, David Lemmon, Jim Shamas, William Thacker) was authorised to review the deal for public unitholders, at $40,000 each plus $10,000 more for the chairman. These are employee and committee arrangements with no stated change to unitholder economics.
13 June 2006business combination● NeutralMajor
On 12 June 2006 the partnership agreed to merge into Plains All American Pipeline (PAA), with each common unit not bought by PAA converted into 0.77 PAA common units. Separately, LB Pacific (Lehman) agreed to sell PAA the general partner, 2,616,250 common units and 7,848,750 subordinated units for $700 million in cash. The merger needs approval from a unit majority of PPX unitholders and a majority of PAA common unitholders, regulatory approvals, an effective S-4 and NYSE listing, and the LB Pacific purchase must close. Termination fees of $10 million or $40 million apply in specified circumstances, in either direction. This begins the end of the partnership as a standalone listed company; unitholders would hold PAA units if it closes, but it has not yet closed.
8 May 2006material agreement● Neutral
On 2 May 2006 the compensation committee set 2006 base salaries effective 1 April: CEO Irvin Toole Jr. $310,000, Forrest Wylie (Vice Chairman) $265,000, David Wright $232,500, CFO Gerald Tywoniuk $224,000 and Lynn Wood $195,000. It also set maximum bonuses of 60% to 150% of salary and awards of restricted units tied to distributable cash flow per unit. Routine executive pay housekeeping.
7 Apr 2006substantial holder notice● Neutral
Lehman Brothers Holdings Inc, Lehman Brothers Merchant Banking Associates III L.L.C, Lehman Brothers Inc, Lehman Brothers Private Equity Advisers L.L.C, Lehman Brothers Merchant Banking Associates III, L.P, LBMB Partners AIV I L.P, LBMB Fund AIV I L.P, LBMB Capital Partners V AIV I L.P, LBMB AIV II L.P, Lehman Sidecar I, LLC, LB I Group Inc, Lehman Brothers Diversified Private Equity Fund, LB Pacific GP, LLC, LB Pacific, LP reported a PACIFIC ENERGY PARTNERS LP shareholding of 10,465,000 shares (26.08% of votes) in a periodic institutional filing.
7 Feb 2006material agreement● Neutral
On 1 February 2006 the board of the general partner's parent approved extra pay for outside committee chairpersons and gave each outside director 3,000 restricted units vesting over three years. This is routine director pay; the filing gives no dollar figures for the extra pay.
9 Jan 2006securities registration● Neutral
PACIFIC ENERGY PARTNERS LP amended a filing by which it registered a securities offering with the SEC using its shelf eligibility.
22 Dec 2005securities registration● Neutral
PACIFIC ENERGY PARTNERS LP filed the final prospectus for a registered offering.
22 Dec 2005securities registration● Neutral
PACIFIC ENERGY PARTNERS LP registered a securities offering with the SEC using its shelf eligibility.
8 Dec 2005business combination● Neutral
On 8 December 2005 the partnership filed a registration statement to swap the $175 million 6 1/4% Senior Notes due 2015 for identical notes registered with the SEC, with subsidiary guarantees. This fulfils the exchange registration promised when the notes were issued in September; the new notes carry the same terms, and it adds no new debt. Whether the exchange was completed is not stated here.
10 Nov 2005late filing notice▼ Bad
PACIFIC ENERGY PARTNERS LP notified the SEC that its quarterly report would be filed late.
6 Oct 2005asset acquisition disposition● NeutralMajor
On 30 September 2005 the partnership closed the $455 million purchase of the Valero L.P. assets (Martinez and Richmond terminals, three Philadelphia-area terminals, and the 550-mile West Pipeline System), resolving the pending acquisition. It funded the deal with the 4.3 million unit private placement, a public offering of 5.2 million units, the $175 million notes and a new five-year $400 million secured revolver (Bank of America agent; a Lehman affiliate is syndication agent and lender), which replaced the old US and Canadian credit agreements. The private placement buyers also received a registration rights agreement (resale shelf filing within 90 days, 180-day lock-up). The partnership plans about $40 million of capital spending on the acquired assets over three years, and Valero will provide accounting and control-centre services on a transition basis.
28 Sept 2005debt financing● NeutralMajor
On 23 September 2005 the $175 million 6.25% Senior Notes due 2015 were issued and sold to initial purchasers at 99.544% of par, unsecured and with interest paid each March and September starting 15 March 2006. The notes must be redeemed at 99.545% if at least two of the three Valero L.P. asset packages are not bought within 120 days of closing, so the financing is tied to the acquisition completing. The partnership must offer to buy them back at 101% on a change of control, and has agreed to register an exchange offer. This is an addition to the 7 1/8% notes due 2014.
19 Sept 2005material agreement● NeutralMajor
On 15 September 2005 the partnership and its finance subsidiary agreed to sell $175 million of 6 1/4% Senior Notes due 2015, priced at 99.544% to yield 6.3125%, with proceeds to fund part of the Valero L.P. asset purchase; closing was expected 23 September. Separately, on 16 September underwriters exercised their option for 682,500 more common units, completing the public offering started on 8 September (the $32.00 public price is stated in the press release). Together these continue the permanent financing of the acquisition.
9 Sept 2005material agreement● NeutralMajor
On 8 September 2005 the partnership signed an underwriting agreement to sell up to 5,232,500 common units in a public offering under its 2003 shelf registration, expected to close around 14 September 2005. The filing does not state the use of proceeds or the price. Given the pending Valero L.P. acquisition, funding it is plausible (inference). It adds to the dilution from the August private placement.
9 Sept 2005securities registration● Neutral
PACIFIC ENERGY PARTNERS LP filed a prospectus supplement for an offering off its existing shelf.
7 Sept 2005securities registration● Neutral
PACIFIC ENERGY PARTNERS LP filed a prospectus supplement for an offering off its existing shelf.
12 Aug 2005capital raising announcement● NeutralMajor
On 9 August 2005 the partnership agreed to privately sell 4,300,000 new common units at $30.75 each ($132.2 million; about $129.2 million net per the press release) to a group of investment funds. Proceeds help pay for the $455 million Valero L.P. asset purchase, and the sale closes only together with that purchase, now expected by the end of September 2005. Existing unitholders are diluted by the new units. The buyers cannot resell for 180 days, and the price drops if closing falls after the record date for the third-quarter distribution.
What it means for a shareholder
4.3m new shares at $30.75 to raise about $132m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Create a free account to see this worked out for your own holding.
1 Aug 2005material agreement● Neutral
On 26 July 2005 the general partner amended its management incentive plan, mainly to reflect the 3 March 2005 purchase of the general partner by LB Pacific (Lehman), which the earlier filings had left unconfirmed as to timing. A change of control is now also triggered if Lehman entities fall below 20% of the economic interests in the general partner or its parent. This is governance housekeeping with no stated effect on unitholders' economics.
8 July 2005debt financing▲ GoodMajor
On 1 July 2005 a wholly owned subsidiary agreed to buy terminal and pipeline assets from Valero L.P. subsidiaries for $455 million. Valero L.P. must sell them under a Federal Trade Commission order tied to its Kaneb acquisition. The assets are two San Francisco-area terminals (4.1m bbl), three Philadelphia-area terminals (3.2m bbl) and a 550-mile Rocky Mountain refined products pipeline with terminals (1.7m bbl). A $22.75 million letter of credit was posted as deposit and the partnership guaranteed the subsidiary's obligations. It has $700 million of financing commitments (a new $400 million five-year secured revolver to replace the existing US and Canadian revolvers, plus a $300 million 364-day bridge) and expects to fund permanently with new units and debt. Closing needs regulatory approvals; the press release gives about 90 days. It also says management will recommend a $0.03 quarterly distribution increase (5.9%) on closing, which is not yet approved. This is a new large acquisition, and the first push into refined products.
27 June 2005material agreement● Neutral
On 24 June 2005 the board of the partnership's general partner approved the 2005 performance goals for the Annual Incentive Compensation Plan, with a summary filed as an exhibit. This is routine executive pay housekeeping; the text shown contains no figures. The signature block now names Pacific Energy GP, LP and Pacific Energy Management LLC as general partner, which is consistent with a changed general partner structure (inference, tied to the Lehman sale).
31 Mar 2005substantial holder notice● Neutral
Lehman Brothers Holdings Inc, Lehman Brothers Merchant Banking Associates III LLC, Lehman Brothers Inc, LB I Group Inc, LB Pacific GP, LLC, LB Pacific, LP reported a PACIFIC ENERGY PARTNERS LP shareholding of 10,465,000 shares (34.60% of votes) in a periodic institutional filing.
31 Mar 2005substantial holder notice● Neutral
FIRST RESERVE GP X, INC., FIRST RESERVE GP X, L.P., FIRST RESERVE PACIFIC HOLDINGS AIV, L.P. disclosed a new substantial PACIFIC ENERGY PARTNERS LP shareholding (13.70% of votes).
14 Mar 2005substantial holder notice● Neutral
Lehman Brothers Holdings Inc, Lehman Brothers Inc, LB I Group Inc, LB Pacific GP, LLC, LB Pacific, LP disclosed a new substantial PACIFIC ENERGY PARTNERS LP shareholding (34.70% of votes).
3 Nov 2004material agreement● NeutralMajor
On 29 October 2004 the partnership announced that The Anschutz Corporation agreed to sell its 36.7% interest (10,465,000 subordinated units plus the general partner, Pacific Energy GP, Inc.) to LB Pacific, LP, formed by Lehman Brothers Merchant Banking; the price was undisclosed and closing was expected in Q1 2005, subject to approvals. It replaces the Anschutz group's control noted since the 2002 IPO. The partnership signed an ancillary agreement covering transition services, non-competes, and buyer/seller reimbursement of certain costs capped at $650,000; the press release says the sale could trigger a 101% senior note repurchase offer if there is a credit rating downgrade within 90 days of closing, and bank waivers would be sought.