Company: PAGP
Filing Date: 2025-12-03
Form Type: 8-K
Source: 0001104659-25-118148
Chunk: 1

Company: PLAINS GP HOLDINGS LP
Filing Date: 2025-12-03
Form: 8-K
Item: Item 2.03
Chunk 1
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Item 2.03      Creation of a Direct Financial Obligation.  

On November 26, 2025, PAA entered into a
term loan agreement (the “ Term Loan Agreement”) by and among PAA, as borrower, PNC Bank, National Association, as administrative
agent, and the other lenders party thereto (collectively, the “ Lenders”).

The Term Loan Agreement provides for a $1.1
billion senior unsecured term loan (the “ Term Loan”) to be funded on or prior to December 2, 2025. The Term Loan
will mature on the two-year anniversary of the closing date. PAA may at any time prepay amounts outstanding under the Term Loan
Agreement, in whole or in part, without premium or penalty. The closing of the previously announced sale by PAA of its Canadian natural gas liquids business to Keyera Corp. will trigger mandatory
prepayment of all amounts outstanding under the Term Loan Agreement within seven (7) business days of the closing of such sale.

Borrowings under the Term Loan Agreement accrue
interest based, at PAA’s election, on either Term SOFR or the Base Rate, in each case, plus an applicable rate. From the closing
date to (but excluding) the first anniversary of the closing date, the applicable rate is 1.125% for Term SOFR Loans and 0.125% for Base
Rate Loans; on and after the first anniversary, the applicable rate increases to 1.250% for Term SOFR Loans and 0.250% for Base Rate Loans.

The Term Loan Agreement contains representations
and warranties and events of default that are customary for investment grade, senior unsecured commercial bank term loan facilities. Upon
an event of default under the Term Loan Agreement, the Lenders thereunder may declare amounts outstanding to be immediately due and payable.
In addition, the Term Loan Agreement contains customary covenants limiting PAA’s or certain of its subsidiaries’ ability to,
among other things:

  grant liens on their principal property or equity interests in subsidiaries  

  incur indebtedness, including capital leases;  

  sell substantially all of their assets or enter into a merger or consolidation;  

  engage in transactions with affiliates; and  

  enter into certain burdensome agreements.  

In addition, the Term Loan Agreement prohibits
the declaration or making of distributions on, or purchases or redemptions of, PAA’s equity interests if any Default or Event of
Default