Pembina greenshoe exercised, raising preferreds to C$400 million

New York, Dec. 7 – Pembina Pipeline Corp. said the underwriters of its recent offering of cumulative redeemable minimum rate reset class A preferred shares exercised the C$100 million over-allotment option in full, raising the size of the deal to C$400 million.

The preferreds settled on Thursday and trading began the same day on the Toronto Stock Exchange under the symbol “PPLPrU,” according to a news release.

Pembina priced the original C$300 million of series 21 perpetual preferreds on Nov. 28 at par with a 4.9% dividend that resets on March 1, 2023 and every five years subsequently at the five-year Government of Canada bond yield plus 326 bps with a floor of 4.9%.

With the greenshoe, Pembina issued a total of 16 million preferred shares with a C$25.00 liquidation preference.

RBC Capital Markets (Canada) Ltd., CIBC World Markets Inc. and Scotia Capital Inc. were the lead managers.

Pembina Pipeline intends to use the proceeds to reduce debt under its credit facilities.

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

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