Pembina holders permitted to convert series 17 preferred shares

By Marisa Wong

Los Angeles, March 1 – Pembina Pipeline Corp. announced that holders of its series 17 cumulative redeemable rate reset class A preferred shares may convert those shares on a one-to-one basis into series 18 cumulative redeemable floating-rate class preferred shares.

The conversion rights are available because Pembina has chosen not to redeem the series 17 preferred shares on March 31, according to a press release.

Holders may exercise their conversion right on March 31.

There are currently 6 million series 17 shares outstanding.

The conversion right is conditioned on at least 1 million shares of both series remaining outstanding after the conversion date. Otherwise, if series 17 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 18 shares outstanding after the conversion, no series 17 shares will be converted into series 18 shares.

The annual dividend rate for the series 17 shares from March 31, 2024 to March 31, 2029 will be 6.605%.

The annual dividend rate for the series 18 shares starting March 31 will be 7.991%, but resets quarterly based on the Government of Canada treasury bill plus 301 basis points.

The conversion period for elections starts on March 1 and ends at 5 p.m. ET on March 18.

Holders should communicate with their brokers if they intend to convert their shares, the company said.

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

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