/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES./
CALGARY, Jan. 15, 2016 /CNW/ - 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 cumulative redeemable minimum rate reset class A
preferred shares, Series 11 (the "Series 11 Preferred Shares") for
aggregate gross proceeds of $170
million (the "Offering").
The Offering was announced on January 6,
2016 when Pembina entered
into an agreement with a syndicate of underwriters led by
Scotiabank, BMO Capital Markets and RBC Capital Markets. A total of
6,800,000 Series 11 Preferred Shares, which includes 800,000 Series
11 Preferred Shares issued pursuant to the partial exercise of the
underwriters' option, were sold under the Offering.
Proceeds from the Offering will be used to reduce indebtedness
under the Company's credit facilities, as well as for capital
expenditures and working capital requirements in connection with
the Company's 2016 capital program.
The Series 11 Preferred Shares will begin trading on the Toronto
Stock Exchange today under the symbol PPL.PR.K.
Dividends on the Series 11 Preferred Shares are expected to be
$1.4375 per share annually, payable
quarterly 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 March 1,
2021.
Concurrently with the closing of the Offering, Pembina's Board of Directors has declared the
initial quarterly dividend for the Series 11 Preferred Shares in
the amount of $0.1812, for the period
of January 15, 2016 to March 1, 2016. The dividend will be payable on
March 1, 2016, to shareholders of
record on February 1, 2016.
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 any of the securities in
the United States. The securities
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 laws and may not be offered or sold within
the United States unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
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 over 60 years. Pembina owns and operates an integrated system
of pipelines that transport various products derived from natural
gas and hydrocarbon liquids produced in western Canada and North
Dakota. The Company also owns and operates gas gathering and
processing facilities and an oil and natural gas liquids
infrastructure and logistics business. Pembina's integrated assets and commercial
operations along the entire hydrocarbon value chain allow it to
offer a full spectrum of midstream and marketing services to the
energy sector. Pembina is
committed to working with its community and aboriginal neighbours,
while providing value for investors in a safe, environmentally
responsible manner. This balanced approach to operating ensures the
trust Pembina builds among all of
its stakeholders is sustainable over the long-term. 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 Statements & Information
This document contains certain forward-looking statements and
information (collectively, "forward-looking 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
some cases, forward-looking statements can be identified by
terminology such as "plans", "expects", "proposes", "projects",
"will", "estimates", "anticipates", "develop", "could" and similar
expressions suggesting future events or future performance.
In particular, this news release contains forward-looking
statements relating to the planned use of proceeds from the
Offering, the commencement of trading of the Series 11 Preferred
Shares, and the timing and amount of dividend payments.
These forward-looking statements 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. 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; 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 the prospectus supplement dated January 8, 2015, the final short form base shelf
prospectus dated March 18, 2015 and
in Pembina's management's
discussion and analysis and annual information form for the year
ended December 31, 2014, which can be
found at www.sedar.com. There can be no assurance that
dividends will be paid. The declaration and payment of any dividend
by Pembina is at the discretion of
the Company's Board of Directors and will depend on numerous
factors, including compliance with applicable laws and the
financial performance, debt, obligations, working capital
requirements and future capital requirements of Pembina and its subsidiaries. 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