By Cristal Cody
Tupelo, Miss., Jan. 28 – Pembina Pipeline Corp. priced a C$600 million two-part offering of senior medium-term notes (/BBB/DBRS: BBB) on Wednesday, according to the company and a market source.
In the first tranche, the company sold C$450 million of 3.54% 10-year series 5 notes at 99.958 to yield 3.545%. The notes priced with a spread of 217 basis points versus the interpolated Government of Canada bond curve.
Pembina Pipeline also priced a C$150 million add-on to its 4.75% series 3 notes due April 30, 2043 at 101.81 to yield 4.633%, or a spread of 265 bps over the Government of Canada benchmark.
The company originally sold C$200 million of the bonds on April 25, 2013 at 99.762 to yield 4.765%, or a spread of 235 bps over the Government of Canada benchmark. The total outstanding is C$350 million.
CIBC World Markets Inc. and National Bank Financial Inc. were bookrunners for the deal.
Proceeds will be used to reduce short-term debt under the company’s credit facilities, to fund Pembina’s capital program and for other general corporate purposes.
Calgary, Alta.-based Pembina Pipeline is a transportation and midstream service provider for the energy industry.
| Issuer: | Pembina Pipeline Corp.
|
| Amount: | C$600 million
|
| Securities: | Senior medium-term notes
|
| Bookrunners: | CIBC World Markets Inc., National Bank Financial Inc.
|
| Co-managers: | RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., TD Securities Inc.
|
| Pricing date: | Jan. 28
|
| Settlement date: | Feb. 2
|
| Ratings: | Standard & Poor’s: BBB
|
| DBRS: BBB
|
| Distribution: | Canada
|
|
|
| Series 5 notes
|
| Amount: | C$450 million
|
| Maturity: | Feb. 3, 2025
|
| Coupon: | 3.54%
|
| Price: | 99.958
|
| Yield: | 3.545%
|
| Spread: | 217 bps over interpolated Government of Canada bond curve
|
|
|
| Series 3 notes
|
| Amount: | C$150 million reopening
|
| Maturity: | April 30, 2043
|
| Coupon: | 4.75%
|
| Price: | 101.81
|
| Yield: | 4.633%
|
| Spread: | 265 bps over Government of Canada benchmark
|
| Total outstanding: | C$350 million
|
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