Pembina Pipeline Corp. will use proceeds from the public offering of notes for general purposes, funding a portion of the purchase price and repaying debts. (Source: Shutterstock)
Pembina Pipeline Corp. has agreed to issue $1.8 billion of aggregate principal amount senior unsecured medium-term notes, the company said Jan. 10.
The offering will be conducted in three tranches consisting of $600 million in principal amount senior notes. The notes are unsecured medium-term notes to be paid semi-annually. The series 20 notes have a fixed coupon of 5.02% per annum and mature on Jan. 12, 2032. The series 21 notes have a fixed coupon of 5.21% per annum and mature on Jan. 12, 2034 and the series 22 notes have a fixed coupon of 5.67% per annum and will mature Jan. 12, 2054.
Closing of the offering is expected on Jan. 12. The proceeds of the offering will be used for general corporate purposes as well as funding a portion of the purchase price for the previously announced acquisition of all of the interests of Enbridge Inc. and related operatorship contracts, as well as repaying Pembina’s indebtedness of under its unsecured $1.5 billion revolving credit facility.
Pembina will be required to redeem the series 20 and 21 notes pursuant to a special mandatory redemption at a price equal to 101% of the aggregate principal amount of the series 20 notes and the series 21 notes if the acquisition hasn’t occurred by Oct. 1 or if the acquisition is terminated or not continued.
The series 20, 21 and 22 notes are being offered through a syndicate of dealers under Pembina's short-form base shelf prospectus dated Dec. 20, 2023, as supplemented by related pricing supplements dated Jan. 10, 2024.
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