PPL Considers Refinancing PPL.PR.K & PPL.PR.M

Pembina Pipeline Corporation has announced:

that it is considering an offering of hybrid subordinated debt securities under its short form base shelf prospectus dated December 30, 2020.

If a successful offering is priced and completed, the Company intends to use the net proceeds of the offering to redeem or repurchase its outstanding cumulative redeemable minimum rate reset Class A Preferred Shares, Series 11 (TSX: PPL.PR.K) and its cumulative redeemable minimum rate reset Class A Preferred Shares, Series 13 (TSX: PPL.PR.M), to repay other outstanding indebtedness, as well as for general corporate purposes. There is no certainty that Pembina will ultimately complete the offering being considered or as to the timing or terms on which such an offering might be completed.

Assiduous Readers will remember that on July 16 I speculated:

Are speculators hypothesizing that if the banks are successful in creating a new market for deeply subordinated 60-year notes, then the other issuers will join in with great enthusiasm, with a resurgent exchange-traded COPrS market?

There’s no indication in the press release that the contemplated notes will be exchange-traded, but the principle is the same!

This announcement has also been discussed in the comments to another thread. Hat tip to stusclues for bringing this to my attention!

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