PPL.PR.E : No Conversion to FloatingReset

Pembina Pipeline Corporation has announced:

that none of Pembina’s Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 5 (“Series 5 Shares”) (TSX: PPL.PR.E) will be converted into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 6 of Pembina (“Series 6 Shares”) on June 3, 2019.

After taking into account all conversion notices received from holders of its outstanding Series 5 Shares by the May 17, 2019 deadline for the conversion of the Series 5 Shares into Series 6 Shares, less than the 1,000,000 Series 5 Shares required to give effect to conversions into Series 6 Shares were tendered for conversion.

PPL.PR.E is a FixedReset, 5.00%+300, that commenced trading 2014-1-16 after being announced 2014-1-7. It will reset At 4.573% effective June 1, 2019. I recommended against conversion. The issue is tracked by HIMIPref™ but relegated to the Scraps – FixedReset Discount index on credit concerns.

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