By Cristal Cody
Tupelo, Miss., Nov. 28 – Pembina Pipeline announced on Tuesday that it priced C$300 million of cumulative redeemable minimum rate reset class A preferred shares with a 4.9% annual dividend for the initial period to but excluding March 1, 2023.
The company sold 12 million shares of the series 21 preferred stock at C$25.00 per share.
The deal includes an over-allotment option of 4 million shares at C$25.00 per share.
RBC Capital Markets (Canada) Ltd., CIBC World Markets Inc. and Scotia Capital Inc. were the lead managers.
The dividend rate will reset on March 1, 2023 and every five years thereafter at a rate equal to the then five-year Government of Canada bond yield plus 326 basis points, and in any event, not less than 4.9%.
The preferred shares are redeemable by Pembina on March 1, 2023 and on March 1 of every fifth year thereafter at a price of C$25.00 per share, plus accrued and unpaid dividends.
Series 21 preferred shareholders will have the right to convert their shares into series 22 cumulative redeemable floating-rate class A preferred shares on March 1, 2023 and on March 1 of every fifth year thereafter.
The series 22 holders will be entitled to receive quarterly floating-rate cumulative dividends at a rate equal to the then 90-day Government of Canada treasury bill rate plus 326 bps.
Pembina Pipeline intends to use the proceeds to reduce debt under its credit facilities.
The Calgary-based transportation and midstream service provider serves the North American energy industry.
| Issuer: | Pembina Pipeline Corp.
|
| Amount: | C$300 million, or 12 million shares
|
| Greenshoe: | C$100 million, or 4 million shares
|
| Maturity: | Perpetual
|
| Securities: | Cumulative redeemable minimum rate reset class A preferred shares
|
| Bookrunners: | RBC Capital Markets (Canada) Ltd., CIBC World Markets Inc. and Scotia Capital Inc.
|
| Dividend: | 4.9%; resets March 1, 2023 and every five years thereafter at then five-year Government of Canada bond yield plus 326 bps, and in any event, not less than 4.9%
|
| Price: | C$25.00 per share
|
| Call feature: | March 1, 2023 and March 1 of every fifth year thereafter at C$25.00 per share plus accrued and unpaid dividends
|
| Pricing date: | Nov. 28
|
| Settlement date: | Dec. 7
|
| Distribution: | Canada
|
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