Pembina to issue $225 million in subordinated notes

Published 08/10/2025, 22:10
Pembina to issue $225 million in subordinated notes

CALGARY - Pembina Pipeline Corporation (TSX:PPL; NYSE:PBA), a $23.7 billion market cap energy infrastructure company, announced Wednesday it will issue $225 million in 5.95% Fixed-to-Fixed Rate Subordinated Notes, Series 2, due June 6, 2055. According to InvestingPro data, the company has maintained dividend payments for 21 consecutive years, currently offering a 5% yield.

This issuance represents a further offering of Series 2 Notes previously issued by the company on June 6, 2025, in the amount of $200 million. Following the closing of this offering, $425 million aggregate principal amount of Series 2 Notes will be outstanding.

The offering is expected to close on or about October 10, 2025, subject to customary closing conditions. Pembina intends to use the net proceeds to fund the redemption of its outstanding Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 9 (TSX:PPL.PR.I) and for general corporate purposes.

The notes are being offered through a syndicate of underwriters co-led by CIBC Capital Markets, BMO Capital Markets and Scotiabank, under Pembina’s short form base shelf prospectus dated December 13, 2023, as supplemented by a prospectus supplement.

Pembina Pipeline Corporation is an energy transportation and midstream service provider that has operated in North America for more than 70 years. The company owns a network of hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure, and export terminals.

The information in this article is based on a press release statement from the company.

In other recent news, Pembina Pipeline Corporation has announced significant developments impacting its operations and future prospects. The company is considering an offering of subordinated notes, with the intention of using the proceeds to redeem outstanding preferred shares and for general corporate purposes. Pembina, in partnership with Kineticor, has also made notable progress on the Greenlight Electricity Centre, a gas-fired power generation facility in Alberta, securing a 907-megawatt allocation for a potential customer. Furthermore, the Canada Energy Regulator has approved a negotiated settlement for the Canadian portion of the Alliance Pipeline, establishing a new tolling structure for the next decade. This settlement is expected to reduce long-term firm tolls by an average of 14 percent. Raymond James has raised its price target for Pembina Pipeline to C$64 while maintaining an Outperform rating, despite the company’s recent underperformance in the firm’s coverage universe. These developments indicate ongoing strategic moves by Pembina to strengthen its position in the energy sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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