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Pembina Pipeline Corporation (TSX: PPL; NYSE: PBA) has announced its plan to issue $950 million in senior unsecured medium-term notes. The offering will be conducted in three tranches and is expected to close on June 28, 2024.
Details of the Offering
Pembina's $950 million issuance will be divided into three separate tranches:
- Series 23 Notes: $650 million principal amount with a fixed coupon of 5.22% per annum, paid semi-annually, maturing on June 28, 2033.
- Series 20 Notes (Re-opening): $150 million principal amount with a fixed coupon of 5.02% per annum, paid semi-annually, maturing on January 12, 2032.
- Series 22 Notes (Re-opening): $150 million principal amount with a fixed coupon of 5.67% per annum, paid semi-annually, maturing on January 12, 2054.
The notes are being offered through a syndicate of dealers under Pembina's short form base shelf prospectus dated December 20, 2023, as supplemented by related pricing supplements dated June 26, 2024.
Use of Proceeds
The net proceeds from this offering will be allocated towards the following purposes:
- Repaying indebtedness under Pembina's $1.5 billion unsecured revolving credit facility, maturing in June 2029.
- Funding the previously announced redemption of $150 million of the company's $300 million 5.72% Medium Term Notes, Series 19, due June 22, 2026.
- General corporate purposes.
Regulatory Information
This announcement does not constitute an offer to sell or solicit an offer to buy the notes in any jurisdiction. The notes have not been approved or disapproved by any regulatory authority, nor have they been registered under the United States Securities Act of 1933 or any state securities laws. Therefore, they may not be offered or sold within the United States.
About Pembina Pipeline Corporation
Pembina Pipeline Corporation is a leading energy transportation and midstream service provider in North America, serving the energy industry for 70 years. The company is known for its extensive pipeline network and storage facilities, which support the transportation of oil, gas, and natural gas liquids across the continent. Pembina's strategic initiatives and robust financial performance have solidified its reputation as a key player in the energy sector.
Summary
Pembina Pipeline Corporation's $950 million notes offering highlights its strategic financial management and commitment to strengthening its capital structure. By refinancing existing debt and funding general corporate purposes, Pembina aims to enhance its operational flexibility and support its growth initiatives in the energy sector. The expected closure of the offering on June 28, 2024, marks another significant milestone in Pembina's long-standing history of serving North America's energy transportation need
