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DISSEMINATION IN THE UNITED
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CALGARY, Dec. 7, 2017 /CNW/ - Pembina Pipeline Corporation
("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) is pleased to
announce that it has closed its previously announced public
offering of cumulative redeemable minimum rate reset class A
preferred shares, Series 21 (the "Series 21 Preferred Shares") for
aggregate gross proceeds of $400
million (the "Offering").
The Offering was announced on November
28, 2017 when Pembina entered into an agreement with a
syndicate of underwriters co-led by RBC Capital Markets, CIBC World
Markets and Scotiabank. A total of 16,000,000 Series 21 Preferred
Shares, which includes 4,000,000 Series 21 Preferred Shares issued
pursuant to the exercise of the underwriters' option, were
sold under the Offering.
The Company intends to use the net proceeds from the Offering to
reduce indebtedness of the Company under its credit facilities. The
indebtedness of the Company under the credit facilities was
incurred in the normal course of business to fund the Company's
capital program, and to fund a portion of the cash consideration
payable to former common shareholders of Veresen Inc. ("Veresen")
pursuant to the plan of arrangement with Veresen which closed on
October 2, 2017.
The Series 21 Preferred Shares will begin trading on the Toronto
Stock Exchange today under the symbol PPL.PR.U.
Dividends on the Series 21 Preferred Shares are expected to be
$1.225 per share annually, payable
quarterly on the 1st day of March, June, September and
December, as and when declared by the Board of Directors of
Pembina, for the initial fixed rate period to but excluding
March 1, 2023. The first dividend, if
declared, will be payable March 1,
2018, in the amount of $0.2819
per share.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within
the United States unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
About Pembina
Calgary-based Pembina Pipeline
Corporation is a leading transportation and midstream service
provider that has been serving North
America's energy industry for over 60 years. Pembina owns
and operates an integrated system of pipelines that transport
various products derived from natural gas and hydrocarbon liquids
produced primarily in western Canada. The Company also owns and operates gas
gathering and processing facilities and an oil and natural gas
liquids infrastructure and logistics business. Pembina's integrated
assets and commercial operations along the majority of the
hydrocarbon value chain allow it to offer a full spectrum of
midstream and marketing services to the energy sector. Pembina is
committed to working with its community and aboriginal neighbours,
while providing value for investors in a safe, environmentally
responsible manner. This balanced approach to operating ensures the
trust Pembina builds among all of its stakeholders is sustainable
over the long term. Pembina's common shares trade on the
Toronto and New York stock exchanges under PPL and PBA,
respectively. Pembina's preferred shares also trade on the
Toronto stock exchange. For more
information, visit www.pembina.com.
Forward-Looking Statements & Information
This document contains certain forward-looking statements and
information (collectively, "forward-looking statements") that are
based on Pembina's current expectations, estimates, projections and
assumptions in light of its experience and its perception of
historical trends. In some cases, forward-looking statements
can be identified by terminology such as "plans", "expects",
"proposes", "projects", "will", "estimates", "anticipates",
"develop", "could" and similar expressions suggesting future events
or future performance.
In particular, this news release contains forward-looking
statements relating to the planned use of proceeds from the
Offering, the commencement of trading of the Series 21 Preferred
Shares, and the timing and amount of dividend payments. These
forward-looking statements are being made by Pembina based on
certain assumptions that Pembina has made in respect thereof as at
the date of this document, including: that favourable growth
parameters continue to exist in respect of current and future
growth projects (including the ability to finance such projects on
favourable terms); and that Pembina's businesses will continue to
achieve sustainable financial results. These forward-looking
statements are not guarantees of future performance and are subject
to a number of known and unknown risks and uncertainties,
including, but not limited to: non-performance of agreements in
accordance with their terms; the impact of competitive entities and
pricing; reliance on key industry partners, alliances and
agreements; the strength and operations of the oil and natural gas
production industry and related commodity prices; the continuation
or completion of third-party projects; regulatory environment and
inability to obtain required regulatory approvals; tax laws and
treatment; fluctuations in operating results; the ability of
Pembina to raise sufficient capital to complete future projects and
satisfy future commitments; construction delays; labour and
material shortages; and certain other risks detailed from time to
time in Pembina's public disclosure documents including, among
other things, those detailed under the heading "Risk Factors" in
the prospectus supplement dated November 30,
2017, the final short form base shelf prospectus dated
July 27, 2017 and in Pembina's
management's discussion and analysis and annual information form
for the year ended December 31, 2016,
which can be found at www.sedar.com. There can be no assurance
that dividends will be paid. The declaration and payment of any
dividend by Pembina is at the discretion of the Company's Board of
Directors and will depend on numerous factors, including compliance
with applicable laws and the financial performance, debt,
obligations, working capital requirements and future capital
requirements of Pembina and its subsidiaries. The intended use of
the net proceeds of the offering by Pembina may change if the board
of directors of Pembina determines that it would be in the best
interests of Pembina to deploy the proceeds for some other
purpose.
Accordingly, readers are cautioned that events or
circumstances could cause results to differ materially from those
predicted, forecasted or projected. Such forward-looking
statements are expressly qualified by the above statements.
Pembina does not undertake any obligation to publicly update or
revise any forward-looking statements or information contained
herein, except as required by applicable laws.
Pembina Pipeline® is a registered trademark of
Pembina Pipeline Corporation.
SOURCE Pembina Pipeline Corporation