CALGARY, May 26, 2020 /PRNewswire/ -- Pembina Pipeline
Corporation ("Pembina") (TSX: PPL; NYSE:
PBA) announced today that it has agreed to issue $500 million of senior unsecured medium-term
notes (the "Offering"). The Offering will be conducted in two
tranches consisting of $400 million
in senior unsecured medium-term notes, series 16 (the "Series 16
Notes") having a fixed coupon of 4.67 percent per annum, paid
semi-annually, and maturing on May 28,
2050; and $100 million
principal amount to be issued through a re-opening of the Company's
3.71 percent medium-term notes, series 7, due August 11, 2026 (the "Series 7 Notes").
Closing of the Offering is expected to occur on May 28, 2020 and the net proceeds are intended to
be used to repay indebtedness of the Company under its unsecured
$2.5 billion revolving credit
facility due May 2024 incurred in
connection with the acquisition of the U.S. portion of the Cochin
Pipeline system, as well as to fund Pembina's capital program and
for general corporate purposes.
The Series 16 Notes and the re-opening of the Series 7 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 May 26,
2020.
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.
About Pembina
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 developing 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. These new
developments will contribute to ensuring that hydrocarbons produced
in the Western Canadian Sedimentary Basin and the other basins
where Pembina operates can reach the highest value markets
throughout the world.
Purpose of Pembina:
To be the leader in delivering integrated infrastructure
solutions connecting global markets;
- Customers choose us first for reliable and value-added
services;
- Investors receive sustainable industry-leading total
returns;
- Employees say we are the 'employer of choice' and value
our safe, respectful, collaborative and fair work culture; and
- Communities welcome us and recognize the net positive
impact of our social and environmental commitment.
Pembina is structured into three Divisions: Pipelines
Division, Facilities Division and Marketing & New Ventures
Division.
Pembina's common shares trade on
the Toronto and New York stock exchanges under
PPL and PBA, respectively. For more information,
visit www.pembina.com.
Forward-Looking Information and Statements
This document contains certain forward-looking statements and
information (collectively, "forward-looking statements") within the
meaning of the "safe harbor" provisions of applicable securities
legislation that are based on Pembina's current expectations,
estimates, projections and assumptions in light of its experience
and its perception of historical trends. In some cases,
forward-looking statements can be identified by terminology such as
"intend", "will", "shall", and similar expressions suggesting
future events or future performance.
In particular, this news release contains forward-looking
statements relating to the Offering, including the anticipated
closing date of the Offering and the use of the net proceeds of the
Offering. These forward-looking statements are based on certain
assumptions that Pembina has made in respect thereof as at the date
of this news release, including: prevailing commodity prices,
margins and exchange rates, that Pembina's businesses will continue
to achieve sustainable financial results and that future results of
operations will be consistent with past performance and management
expectations in relation thereto, the availability and sources of
capital, operating costs, ongoing utilization and future
expansions, the ability to reach required commercial agreements,
and the ability to obtain required regulatory approvals. These
forward-looking statements are not guarantees of future performance
and are subject to a number of known and unknown risks and
uncertainties, including, but not limited to: non-performance of
agreements in accordance with their terms; the impact of
competitive entities and pricing; reliance on key industry
partners, alliances and agreements; the strength and operations of
the oil and natural gas production industry and related commodity
prices; the continuation or completion of third-party projects;
regulatory environment and inability to obtain required regulatory
approvals; tax laws and treatment; fluctuations in operating
results; the ability of Pembina to raise sufficient capital to
complete future projects and satisfy future commitments;
construction delays; labour and material shortages; risks relating
to widespread epidemics or pandemic outbreaks, including the
COVID-19 pandemic; and certain other risks detailed from time to
time in Pembina's public disclosure documents including, among
other things, those detailed under the heading "Risk Factors" in
Pembina's management's discussion and analysis and annual
information form, each for the year ended December 31, 2019, and in Pembina's management's
discussion and analysis for the three months ended March 31, 2020, all which can be found at
www.sedar.com and with the U.S. Securities and Exchange Commission
at www.sec.gov and available on Pembina's website at
www.pembina.com. In addition, the closing of the Offering may not
be completed, or may be delayed, if the conditions to the closing
of the Offering are not satisfied on the anticipated timeline or at
all. Accordingly, there is a risk that the Offering will not be
completed within the anticipated time, on the terms currently
proposed, or at all. The intended use of the net proceeds of the
Offering by Pembina may change if the board of directors of Pembina
determines that it would be in the best interests of Pembina to
deploy the proceeds for some other purpose and there can be no
guarantee as to how or when such proceeds may be used.
Accordingly, readers are cautioned that events or
circumstances could cause results to differ materially from those
predicted, forecasted or projected. Such forward-looking statements
are expressly qualified by the above statements. Pembina does not
undertake any obligation to publicly update or revise any
forward-looking statements or information contained herein, except
as required by applicable laws.
For further information: Investor Relations: Scott
Arnold, (403) 231-3156, 1-855-880-7404, e-mail:
investor-relations@pembina.com, www.pembina.com