PrefBlog

Pembina Pipeline Corporation has announced (on November 16):

that none of Pembina’s Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 1 (“Series 1 Shares”) will be converted into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 2 of Pembina (“Series 2 Shares”) on December 1, 2018.

After taking into account all conversion notices received from holders of its outstanding Series 1 Shares by the November 16, 2018 deadline for the conversion of the Series 1 Shares into Series 2 Shares, less than the 1,000,000 Series 2 Shares required to give effect to conversions into Series 2 Shares were tendered for conversion.

It will be recalled that PPL.PR.A will reset at 4.906% effective December 1. I recommended against conversion.

PPL.PR.A is a FixedReset, 4.25%+247, that commenced trading 2013-7-26 after being announced 2013-7-17. It is tracked by HIMIPref™ and assigned to the “Scraps – FixedResets (Discount)” subindex, relegated there due to credit concerns.

This entry was posted on Monday, November 19th, 2018 at 10:16 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.