/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
All financial figures are in Canadian dollars, unless otherwise noted.
CALGARY, Jan. 16, 2014 /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 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 led by Scotiabank and RBC
Capital Markets. 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.
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
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
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
SOURCE: Pembina Pipeline Corporation
For further information:
Vice President, Capital Markets