CALGARY, Sept. 9, 2019 /CNW/ – Pembina Pipeline Corporation (“Pembina”) (TSX: PPL; NYSE: PBA) announced today that it has agreed to issue $1.5 billion of senior unsecured medium-term notes (the “Offering”). The Offering will be conducted in three tranches consisting of $600 million in senior unsecured medium-term notes, series 14 (the “Series 14 Notes”) having a fixed coupon of 2.56% per annum, paid semi-annually, and maturing on June 1, 2023; $600 million in senior unsecured medium-term notes, series 15 (the “Series 15 Notes”) having a fixed coupon of 3.31% per annum, paid semi-annually, and maturing on February 1, 2030; and $300 million principal amount to be issued through a re-opening of the Company’s 4.54% medium-term notes, series 13, due April 3, 2049 (the “Series 13 Notes”).
Closing of the Offering is expected to occur on September 12, 2019 and the net proceeds are intended to be used to repay short-term indebtedness of the Company under its unsecured $1.0 billion non-revolving term loan due March 2021, as well as to fund Pembina’s capital program and for general corporate purposes.
The Series 14 Notes, Series 15 Notes and the re-opening of the Series 13 Notes are being offered through a syndicate of dealers under Pembina’s short-form base shelf prospectus dated August 30, 2019, as supplemented by related pricing supplements dated September 9, 2019.
This news release does not constitute an offer to sell or the solicitation of an offer to buy the notes in any jurisdiction. The notes being offered have not been approved or disapproved by any regulatory authority. The notes 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 law, and may not be offered or sold within the United States.
Calgary-based Pembina Pipeline Corporation is a leading transportation and midstream service provider that has been serving North America’s energy industry for 65 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. The Company also owns gas gathering and processing facilities; an oil and natural gas liquids infrastructure and logistics business; is growing an export terminals business; and is currently constructing a petrochemical facility to convert propane into polypropylene. 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 identifying additional opportunities to connect hydrocarbon production to new demand locations through the development of infrastructure that would extend Pembina’s service offering even further along the hydrocarbon value chain.