Pembina holders permitted to convert series 25 preferred shares

Chicago, Jan. 17 – Pembina Pipeline Corp. announced that holders of its series 25 preferred shares may convert those shares on a one-to-one basis into cumulative redeemable floating-rate class preferred shares, series 26.

The conversion rights are available because Pembina has chosen not to redeem the series 25 cumulative redeemable minimum-rate reset class A preferred shares on Feb. 15, according to a press release.

Holders may exercise their conversion right on Feb. 15.

There are 10 million series 25 shares outstanding.

The conversion right is conditioned upon at least 1 million shares of both series remaining outstanding after the conversion date. Otherwise, if series 25 dips below the 1 million-share threshold, the remaining shares will be automatically converted into the other series. If there would be less than 1 million series 26 shares outstanding after the conversion, no series 25 shares will be converted into series 26 shares.

The annual dividend rate for the series 25 shares from Feb. 15 to Feb. 15, 2023 will be 6.481%.

The annual dividend rate for the series 26 shares starting Feb. 15 will be 7.866%, but resets quarterly based on the Government of Canada treasury bill plus 351 basis points.

The conversion period for elections starts on Jan. 16 and ends at 5 p.m. ET on Jan. 31.

Holders should communicate with their brokers if they intend to convert their shares.

Calgary, Alta.-based Pembina Pipeline is a transportation and midstream service provider to the energy industry.

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