PPL.PR.G Firm On Excellent Volume

Pembina Pipeline Corporation has announced:

that it has closed its previously announced public offering of 10,000,000 cumulative redeemable rate reset class A preferred shares, series 7 (the “Series 7 Preferred Shares”) for aggregate gross proceeds of $250 million (the “Offering”).

The Offering was announced on September 2, 2014 when Pembina entered into an agreement with a syndicate of underwriters. Due to strong investor demand, the size of the Offering was increased from an originally proposed offering of 6,000,000 Series 7 Preferred Shares plus an underwriters’ option to purchase up to an additional 2,000,000 Series 7 Preferred Shares (for aggregate gross proceeds of $200 million assuming the underwriters’ option had been exercised in full).

The proceeds from the offering will be used to help fund a portion of Pembina’s proposed purchase of the Vantage pipeline system and the Saskatchewan Ethane Extraction Plant from Mistral Midstream Inc. and other entities affiliated with Riverstone Holdings LLC (the “Transaction”), as well as to fund a portion of the remainder of the Company’s 2014 capital expenditure program and for general corporate purposes. The Transaction is subject to regulatory approvals including approval of the National Energy Board and under the Competition Act (Canada) and the Canada Transportation Act, required consents and other customary closing conditions, including the approval of the Toronto Stock Exchange. Further details about the Transaction are set out in a separate press release from Pembina dated September 2, 2014, and which may be found on Pembina’s SEDAR profile at www.sedar.com.

The Series 7 Preferred Shares will begin trading on the Toronto Stock Exchange today under the symbol PPL.PR.G.

Dividends on the Series 7 Preferred Shares are expected to be $0.2813 quarterly, or $1.125 per share on an annualized basis, payable 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 December 1, 2019.

All of Pembina’s dividends are designated “eligible dividends” for Canadian income tax purposes.

PPL.PR.G is a FixedReset, 4.50%+294, announced 2009-9-2 2014-9-2. It will be tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.

The issue traded 1,451,885 shares today (consolidated exchanges) in a range of 25.05-19 before closing at 25.10-11, 1×70. Vital statistics are:

Maturity Type : Limit Maturity
Maturity Date : 2044-09-11
Maturity Price : 23.19
Evaluated at bid price : 25.12
Bid-YTW : 4.41 %

2 Responses to “PPL.PR.G Firm On Excellent Volume”

  1. adrian2 says:

    “PPL.PR.G is a FixedReset, 4.50%+294, announced 2009-9-2”

    … of course, it should be 2014-9-2.

  2. jiHymas says:

    Whoopsy! Fixed.

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