By Cristal Cody
Tupelo, Miss., June 11 – Pembina Pipeline Corp. sold C$600 million in two tranches of senior medium-term notes (/BBB/DBRS: BBB) on Thursday, according to the company and a market source.
In the first tranche, the company priced C$500 million of 4.24% series 6 notes due 2027 at 99.991 to yield 4.241%. The notes priced at a spread of 225 basis points over the interpolated Government of Canada bond curve.
Pembina Pipeline sold a C$100 million add-on to its 4.75% series 3 notes due 2043 at 96.651 to yield 4.973% with a spread of 225 bps over the Government of Canada benchmark.
The company originally priced 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 now C$300 million.
CIBC World Markets Inc. and National Bank Financial Inc. were the lead managers.
Pembina Pipeline plans to use the proceeds from the deal to repay short-term debt under its credit facilities, to fund its capital program and for other general corporate purposes.
The transportation and midstream service provider for the energy industry is based in Calgary, Alta.
| Issuer: | Pembina Pipeline Corp.
|
| Amount: | C$600 million
|
| Securities: | Senior medium-term notes
|
| Bookrunners: | CIBC World Markets Inc. and National Bank Financial Inc.
|
| Co-managers: | TD Securities Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., Scotia Capital Inc. and J.P. Morgan Securities Canada Inc.
|
| Pricing date: | June 11
|
| Settlement date: | June 16
|
| Ratings: | Standard & Poor’s: BBB
|
| DBRS: BBB
|
| Distribution: | Canada
|
|
|
| Series 6 notes
|
| Amount: | C$500 million
|
| Maturity: | June 15, 2027
|
| Coupon: | 4.24%
|
| Price: | 99.991
|
| Yield: | 4.241%
|
| Spread: | 225 bps over interpolated Government of Canada bond curve
|
|
|
| Series 3 notes
|
| Amount: | C$100 million reopening
|
| Maturity: | April 30, 2043
|
| Coupon: | 4.75%
|
| Price: | 96.651
|
| Yield: | 4.973%
|
| Spread: | 225 bps over Government of Canada benchmark
|
| Total outstanding: | C$300 million
|
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