Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Pembina issues $1.8 billion in medium-term notes

EditorLina Guerrero
Published 01/10/2024, 06:19 PM
Updated 01/10/2024, 06:19 PM
© Reuters.

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.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.