Pembina Pipeline holders convert most debentures ahead of redemption

By Angela McDaniels

Tacoma, Wash., Oct. 19 – Pembina Pipeline Corp. redeemed its outstanding series C 5.75% convertible subordinated debentures and its outstanding series E 5.75% convertible subordinated debentures on Oct. 13, according to a company news release.

Pembina chose to satisfy the par redemption price of the debentures in stock.

The company announced plans for the redemption on Aug. 27, at which time the principal amount of convertibles outstanding was C$251,521,000. It issued 8,556,810 common shares to holders who chose to convert after the announcement but prior to the redemption.

The notes were convertible at any time up to the close of business on Oct. 9 at a price of C$28.55 per share for the series C debentures and C$24.94 per share for the series E debentures. The company’s stock closed at C$33.53 (Toronto: PPL) on Aug. 26.

The remaining debentures were redeemed on the redemption date for an aggregate of 319,273 common shares on the basis of 31 common shares per C$1,000 principal amount of debentures.

The number of shares was calculated by dividing the outstanding principal amount of each series of debentures by 95% of the volume-weighted average trading price of the shares on the Toronto Stock Exchange for the 20 consecutive trading days ended Oct. 5.

The company also paid accrued interest in cash.

Calgary, Alta.-based Pembina Pipeline is a transportation and midstream service provider to the energy industry.

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