CALGARY, Alberta - Pembina Pipeline (NYSE:PBA) Corporation (TSX: PPL (NYSE:PPL); NYSE: PBA), a prominent energy transportation and midstream service provider, has announced the issuance of $1.8 billion in senior unsecured medium-term notes. The offering is structured in three tranches with varying maturities and fixed coupons, to be paid semi-annually: Series 20 Notes maturing in 2032 with a 5.02% coupon, Series 21 Notes maturing in 2034 with a 5.21% coupon, and Series 22 Notes maturing in 2054 with a 5.67% coupon.
Closing of the offering is anticipated to occur on January 12, 2024. The proceeds are earmarked for funding a portion of the acquisition costs of interests in the Alliance, Aux Sable, and NRGreen Power joint ventures, repaying the company's indebtedness under its $1.5 billion unsecured revolving credit facility, and supporting general corporate purposes.
The company has outlined a special mandatory redemption clause for the Series 20 and Series 21 Notes. If the acquisition's closing does not occur by October 1, 2024, or if Pembina decides not to proceed with the acquisition, these notes will be redeemed at 101% of their aggregate principal amount, plus accrued interest.
The notes are offered through a syndicate of dealers under Pembina's short-form base shelf prospectus and related pricing supplements. They have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States.
This move comes as part of Pembina's broader strategy to support its energy infrastructure operations, which include pipelines, processing facilities, and logistics services. The company has a longstanding presence in North America's energy sector, spanning over six decades.
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