CALGARY, ALBERTA–(Marketwired – March 17, 2016) –
All financial figures are in Canadian dollars. Pembina Pipeline Corporation (“Pembina” or the “Company“) (TSX:PPL)(NYSE:PBA) announced today that it has entered into an agreement with a syndicate of underwriters, co-led by Scotiabank and RBC Capital Markets, pursuant to which the underwriters have agreed to purchase from Pembina on a “bought deal” basis and sell to the public 8,825,000 common shares at a price of $34.00 per share, for gross proceeds of approximately $300 million. Pembina has also granted the underwriters an over-allotment option to purchase, on the same terms and exercisable not more than 30 days after the closing of the offering, up to an additional 1,323,750 common shares for additional gross proceeds of up to $45 million. Closing of the offering is expected to occur on or about March 29, 2016, in which case purchasers under this offering who are shareholders of record on April 25, 2016 (the “Record Date“) will be entitled to receive the Company’s monthly cash dividend payable on May 13, 2016 in respect of any common shares held on the Record Date.
Pembina intends to use the net proceeds from the offering, together with funds available under the Company’s existing credit facilities to finance the purchase price for its proposed acquisition of certain natural gas processing assets from Paramount Resources.
The common shares will be offered pursuant to a prospectus supplement under the short form base shelf prospectus filed by the Company on March 18, 2015 in each of the provinces of Canada (collectively, the “prospectus“) and in the U.S. pursuant to applicable registration exemptions. The offering of common shares is made only by the prospectus. The prospectus will contain important detailed information about the securities being offered. Investors should read the prospectus before making an investment decision. The prospectus will be available free of charge on SEDAR at http://www.sedar.com or from the underwriters named in the prospectus. Potential investors may request the prospectus from Scotiabank, Equity Capital Markets (Tel: 1-416-862-5837), Scotia Plaza, 64th Floor, 40 King St. West, Toronto, Ontario M5W 2X6 or RBC Capital Markets, Attention: Distribution Centre, RBC Wellington Square, 8th Floor, 180 Wellington St. West, Toronto, Ontario M5J 0C2 (Fax: 416-313-6066). The offering is subject to customary conditions and receipt of regulatory approvals, including approval of the TSX and the NYSE.
The common shares to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or under any state securities laws, and may not be offered or sold within the United States except in certain transactions exempt from the registration requirements of such Act. This release does not constitute an offer to sell or a solicitation to buy such securities in the United States or in any other jurisdiction where such offer is unlawful.
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 in western Canada and North Dakota. 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 entire 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. For more information, visit www.pembina.com.