All financial figures are in Canadian dollars, unless
otherwise noted.
CALGARY, Jan. 16, 2014 /PRNewswire/ - Pembina Pipeline
Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) is
pleased to announce that it has closed its previously announced
public offering of 10,000,000 cumulative redeemable rate reset
class A preferred shares, series 5 (the "Series 5 Preferred
Shares") for aggregate gross proceeds of $250 million (the "Offering").
The Offering was announced on January 7, 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 5 Preferred Shares plus an
underwriters' option to purchase up to an additional 2,000,000
Series 5 Preferred Shares (for aggregate gross proceeds of
$200 million assuming the
underwriters' option had been exercised in full).
Proceeds from the Offering will be used to
partially fund Pembina's 2014 capital expenditure program,
including capital expenditures relating to Pembina's current
expansion and growth projects, to reduce indebtedness under the
Company's credit facilities, and for general corporate purposes of
the Company and its affiliates.
The Series 5 Preferred Shares will begin trading
on the Toronto Stock Exchange today under the symbol PPL.PR.E.
Pembina's Board of Directors also declared an
initial dividend of $0.1507 per
Series 5 Preferred Share for the period from January 16, 2014 to February 28, 2014 which is payable on
March 1, 2014 to shareholders of
record at the close of business on February
1, 2014.
Future dividends on the Series 5 Preferred
Shares are expected to be $0.3125
quarterly, or $1.25 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
June 1, 2019.
All of Pembina's dividends are designated
"eligible dividends" for Canadian income tax purposes.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy the Series 5 Preferred
Shares in any jurisdiction. The Series 5 Preferred Shares to be
offered have not been and will not be registered under the United
States Securities Act of 1933, as amended, or under any state
securities laws, 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 nearly 60 years. Pembina owns
and operates: pipelines that transport conventional and synthetic
crude oil and natural gas liquids produced in western Canada; oil sands and heavy oil and diluent
pipelines; gas gathering and processing facilities; and an oil and
natural gas liquids infrastructure and logistics business. With
facilities strategically located in western Canada and in natural gas liquids markets in
eastern Canada and the U.S.,
Pembina also offers a full spectrum of midstream and marketing
services that span across its operations. Pembina's integrated
assets and commercial operations enable it to offer services needed
by the energy sector along the hydrocarbon value chain.
Forward-Looking Information and Statements
This news release contains certain forward-looking
information and statements that are based on Pembina's current
expectations, estimates, projections and assumptions in light of
its experience and its perception of historical trends. In this
news release, such forward-looking information and statements can
be identified by terminology such as "to be", "expects", "projects"
and similar expressions.
In particular, this news release contains forward-looking
statements and information relating to the planned use of proceeds
and information relating to future dividends which may be declared
on Pembina's Series 5 Preferred Shares. These forward-looking
statements and information are being made by Pembina based on
certain assumptions that Pembina has made in respect thereof as at
the date of this document, including: that favourable growth
parameters continue to exist in respect of current and future
growth projects (including the ability to finance such projects on
favourable terms); and that Pembina's businesses will continue to
achieve sustainable financial results. In respect of
Pembina's dividends: prevailing commodity prices, margins and
exchange rates; that Pembina's future results of operations will be
consistent with past performance and management expectations in
relation thereto; the continued availability of capital
expenditures relating to expansion, upgrades and maintenance
shutdowns; the success of growth projects; future operating costs;
that counterparties to material agreements will continue to perform
in a timely manner; that there are no unforeseen events preventing
the performance of contracts; and that there are no unforeseen
material construction, integrity or other costs related to current
growth projects or current operations. 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, including the continued designation of dividends on
Pembina's shares as "eligible dividends" under the Income Tax
Act (Canada); 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; 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 for the year
ended December 31, 2012, which can be
found at www.sedar.com. 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.
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.
Pembina Pipeline® is a registered trademark of Pembina
Pipeline Corporation.
SOURCE Pembina Pipeline Corporation