By Cristal Cody
Tupelo, Miss., Sept. 23 - Pembina Pipeline Corp. said on Monday that it priced C$150 million of cumulative redeemable rate-reset class A preferred shares with a 4.7% dividend for the initial fixed-rate period to but excluding March 1, 2019.
The company sold 6 million shares of the series 3 preferred stock (DBRS: Pfd-3) at C$25 each.
RBC Capital Markets and Scotia Capital Inc. were the lead managers.
The deal includes a C$50 million over-allotment option.
The preferreds are redeemable by Pembina at its option on March 1, 2019 and on March 1 of every fifth year thereafter at a price of C$25 per share plus accrued dividends.
The dividend rate will reset on March 1, 2019 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 260 basis points.
Series 3 preferred shareholders will have the right to convert their shares into series 4 cumulative redeemable floating-rate class A preferred shares on March 1, 2019 and on March 1 of every fifth year thereafter. The holders of series 4 preferreds will be entitled to receive quarterly floating-rate cumulative dividends at a rate equal to the sum of the then 90-day Government of Canada Treasury bill rate plus 260 bps.
Pembina Pipeline, a Calgary, Alta.-based energy transportation and midstream service provider, plans to use the proceeds to partially fund capital projects, to reduce short-term debt and for general corporate purposes.
| Issuer: | Pembina Pipeline Corp.
|
| Amount: | C$150 million
|
| Greenshoe: | C$50 million
|
| Securities: | Cumulative redeemable rate-reset class A preferred shares, series 3
|
| Bookrunners: | RBC Capital Markets and Scotia Capital Inc.
|
| Dividend: | Initially 4.7%; resets to five-year Government of Canada bond yield plus 260 bps on March 1, 2019 and every five years thereafter
|
| Price: | C$25 per share
|
| Call feature: | At C$25 per share on March 1, 2019 and on March 1 every five years thereafter
|
| Pricing date: | Sept. 23
|
| Settlement date: | Oct. 2
|
| Rating: | DBRS: Pfd-3
|
| Distribution: | Canada
|
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