Pembina Pipeline greenshoe raises preferred shares to C$225 million

By Tali Rackner

Norfolk, Va., April 10 – Underwriters for Pembina Pipeline Corp.’s series 9 cumulative redeemable rate reset class A preferred shares partially exercised their over-allotment option, adding an additional C$25 million, or 1 million shares, according to a filing with the London Stock Exchange.

The company priced C$200 million of the preferreds on April 2. The greenshoe option was for a total of C$50 million, or 2 million shares.

As previously reported, Scotia Capital Inc. and RBC Dominion Securities Inc. were the lead managers.

The dividend will reset on Dec. 1, 2020 and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 391 basis points.

The series 9 preferred shares are redeemable by Pembina on Dec. 1, 2020 and on Dec. 1 of every following fifth year at C$25.00 per share, plus accrued and unpaid dividends.

Series 9 preferred shareholders will have the right to convert their shares into series 10 cumulative redeemable floating-rate class A preferred shares on Dec. 1, 2020 and on Dec. 1 of every fifth year thereafter. Series 10 preferred shareholders 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 391 bps.

Pembina Pipeline plans to use the proceeds from the offering to reduce debt under the company’s credit facilities.

The Calgary, Alta.-based company is a transportation and midstream service provider that serves the North American energy industry.

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