/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES./
CALGARY,
April 27, 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 10,000,000 cumulative redeemable
minimum rate reset class A preferred shares, Series 13 (the "Series
13 Preferred Shares") for aggregate gross proceeds of $250 million (the "Offering"). The Offering was
announced on April 18, 2016 when
Pembina entered into an agreement
with a syndicate of underwriters co-led by RBC Capital Markets and
Scotiabank.
The Company intends to use the net proceeds from
the Offering for capital expenditures and working capital
requirements in connection with the Company's 2016 capital program
and to reduce indebtedness under the Company's credit
facilities.
The Series 13 Preferred Shares will begin trading
on the Toronto Stock Exchange today under the symbol PPL.PR.M.
Dividends on the Series 13 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 June 1, 2021. The first dividend, if declared,
will be payable September 1, 2016, in
the amount of $0.5002 per share.
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
"intends", "expects", "will", "proposes", "projects", "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 13
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 April 20, 2016, 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, 2015, 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