Energy
Friday, January 12th, 2024 7:10 pm EDT
Key Points
- Pembina Pipeline Completes $1.8 Billion Senior Unsecured Medium-Term Notes Offering: Pembina Pipeline Corp. has successfully closed its offering of $1.8 billion aggregate principal amount of senior unsecured medium-term notes. The offering was conducted in three tranches, with different series having fixed coupons and maturing on January 12, 2032, 2034, and 2054, respectively. This move is part of Pembina’s financial strategy to raise capital through debt instruments.
- Utilization of Proceeds for Strategic Purposes: The net proceeds from the notes offering are expected to be allocated for strategic purposes. These include financing a portion of the acquisition of Enbridge Inc.’s interests in the Alliance, Aux Sable, and NRGreen Power joint ventures, along with related operatorship contracts. Additionally, the funds will be used to repay indebtedness under Pembina’s unsecured $1.5 billion revolving credit facility and for general corporate purposes. This highlights Pembina’s focus on managing its capital structure and supporting growth initiatives.
- Pembina Pipeline’s Profile and Integrated Operations: Pembina Pipeline Corp. is positioned as a leading energy transportation and midstream service provider with over 65 years of experience in serving North America’s energy industry. The company’s integrated network includes hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure, logistics services, and export terminals. The completion of the notes offering reflects Pembina’s commitment to providing safe and reliable energy solutions while strategically financing its operations and growth initiatives.
Pembina Pipeline Corp. has closed its previously announced offering of $1.8-billion aggregate principal amount of senior unsecured medium-term notes. The offering was conducted in three tranches consisting of: $600-million principal amount of senior unsecured medium-term notes, Series 20, having a fixed coupon of 5.02 per cent per annum, paid semi-annually, and maturing on Jan. 12, 2032; $600-million principal amount of senior unsecured medium-term notes, Series 21, having a fixed coupon of 5.21 per cent per annum, paid semi-annually, and maturing on Jan. 12, 2034; and $600-million principal amount of senior unsecured medium-term notes, Series 22, having a fixed coupon of 5.67 per cent per annum, paid semi-annually, and maturing on Jan. 12, 2054.
The net proceeds of the offering are anticipated to be used: (i) to finance a portion of the purchase price for the previously announced acquisition of all of the interests of Enbridge Inc. in the Alliance, Aux Sable and NRGreen Power joint ventures and related operatorship contracts; (ii) to repay indebtedness of the company under its unsecured $1.5-billion revolving credit facility; and (iii) for general corporate purposes.
The Series 20 notes, the Series 21 notes and the Series 22 notes were 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.
About Pembina Pipeline Corp.
Pembina Pipeline is a leading energy transportation and midstream service provider that has served North America’s energy industry for more than 65 years. Pembina owns an integrated network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through its integrated value chain, the company seeks to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future, and benefit its customers, investors, employees and communities.
We seek Safe Harbor.
