By Cristal Cody
Tupelo, Miss., July 17 - Pembina Pipeline Corp. said on Wednesday that it priced C$200 million of cumulative redeemable rate reset class A preferred shares to yield 4.25% for the initial fixed-rate period up to but excluding Dec. 1, 2018.
The company sold 8 million shares of the series 1 preferred stock (DBRS: Pfd-3) at C$25 per share.
RBC Capital Markets and Scotia Capital Inc. were the lead managers.
The deal includes an over-allotment option of C$50 million, or 2 million shares at C$25 per share.
Pembina Pipeline may redeem the shares at its option on Dec. 1, 2018 and on December 1 every five years after that at C$25 per share plus accrued and unpaid dividends.
The dividend rate will reset on December 1, 2018 and every five years subsequently to a rate equal to the sum of the then five-year Government of Canada bond yield plus 247 basis points.
Holders will have the right to convert the preferreds into series 2 cumulative redeemable floating-rate class A preferred shares on Dec. 1, 2018 and on Dec. 1 of every fifth year thereafter.
The Calgary, Alta.-based energy transportation and midstream service provider plans to use the proceeds from the offering to partially fund capital projects, reduce short-term debt and for general corporate purposes.
| Issuer: | Pembina Pipeline Corp.
|
| Amount: | C$200 million
|
| Greenshoe: | C$50 million
|
| Maturity: | Dec. 1, 2018
|
| Securities: | Cumulative redeemable rate reset class A preferred shares
|
| Bookrunners: | RBC Capital Markets and Scotia Capital Inc.
|
| Dividend: | 4.5%
|
| Price: | C$25 per share
|
| Call feature: | Dec. 1, 2018 and on Dec. 1 every five years subsequently
|
| Pricing date: | July 17
|
| Settlement date: | July 26
|
| Ratings: | DBRS: Pfd-3
|
| Distribution: | Canada
|
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