Pembina Pipeline Corporation Announces Completion of Partial Redemption of Series 19 Medium Term Notes

Rhea-AI Summary

Pembina Pipeline (NYSE: PBA) has successfully redeemed $150 million of its $300 million Series 19 Medium Term Notes, due June 22, 2026. The redemption occurred on July 6, 2024, at a price of approximately $1,002.19 per $1,000 principal amount, covering the principal and accrued interest. Pembina financed this redemption using a portion of the $950 million raised from a recent senior unsecured medium-term notes offering.

The Series 19 Notes were initially issued on June 20, 2023, under a pricing supplement to Pembina's 2021 short form base shelf prospectus. Detailed information is available on Pembina's SEDAR+ profile.

Positive

• $150 million of $300 million Series 19 Medium Term Notes redeemed.
• Redemption price included principal and accrued interest, showing good financial planning.
• Funding for redemption sourced from recent $950 million notes offering, indicating successful capital raising.

Negative

• Series 19 Notes only partially redeemed, leaving $150 million outstanding.
• Redemption required additional financing, potentially increasing financial liabilities.

Insights

Financial Analyst

The completion of the redemption of $150 million of Pembina Pipeline Corporation's Series 19 medium-term notes is significant for several reasons. Firstly, this move effectively reduces the company's outstanding debt, which can be a positive signal for investors concerned with the company's leverage. Lower debt levels generally suggest a more stable financial footing, less vulnerability to interest rate hikes and potentially better credit ratings.

Additionally, the redemption was funded through proceeds from a recent $950 million offering of senior unsecured medium-term notes. This indicates that Pembina has successfully managed their debt structure by replacing older debt with new, potentially more favorable debt. Investors should be cautious, however, as the terms of the new debt issuance and interest rates were not disclosed. The impact of refinancing could be neutral or positive depending on the terms.

In the short term, this move might enhance investor confidence and support the stock price. In the long term, it can lead to reduced interest expenses and improved financial health, assuming the new debt terms are favorable.

Market Research Analyst

From a market perspective, Pembina Pipeline's partial redemption of the Series 19 notes is indicative of their proactive debt management strategy. This can be reassuring to investors who track corporate governance and financial prudence. It shows that Pembina is actively managing its liabilities and willing to take steps to ensure long-term financial stability.

Moreover, the company's ability to raise $950 million in a recent offering suggests strong investor demand and confidence in Pembina's creditworthiness. This could be a bullish signal for the company's bond and stock investors alike, reflecting solid market sentiment.

However, potential investors should consider the specific terms of the new debt issuance, as these will impact Pembina's future financial obligations. Understanding these terms is important for assessing long-term implications.

CALGARY, Alberta--(BUSINESS WIRE)-- Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) announced today that it completed the previously announced redemption of $150 million aggregate principal amount (the "Subject Notes") of its outstanding $300 million aggregate principal amount of senior unsecured medium-term notes, series 19 (the "Series 19 Notes") due June 22, 2026 for cash on July 6, 2024 (the "Redemption Date"). The Subject Notes were redeemed at a redemption price of approximately $1,002.19 for each $1,000 principal amount of Subject Notes, being equal to the outstanding principal amount thereof, plus accrued but unpaid interest thereon to, but excluding, the Redemption Date. Pembina funded the redemption of the Subject Notes through a portion of the net proceeds of the recently completed offering by the Company of $950 million aggregate principal amount of senior unsecured medium-term notes.

The Series 19 Notes were issued pursuant to pricing supplement no. 5 dated June 20, 2023 to the short form base shelf prospectus of Pembina dated November 29, 2021, copies of which are available on Pembina's SEDAR+ profile at www.sedarplus.ca.

About Pembina

Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America's energy industry for 70 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 our integrated value chain, we seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit our customers, investors, employees and communities. For more information, please visit www.pembina.com.

Purpose of Pembina: We deliver extraordinary energy solutions so the world can thrive.

Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division.

Pembina's common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. For more information, visit www.pembina.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240708974466/en/

Investor Relations

(403) 231-3156

1-855-880-7404

investor-relations@pembina.com

www.pembina.com

Source: Pembina Pipeline Corporation

FAQ

When did Pembina Pipeline complete the partial redemption of Series 19 Notes?

Pembina Pipeline completed the partial redemption on July 6, 2024.

What was the principal amount redeemed by Pembina Pipeline for the Series 19 Medium Term Notes?

Pembina redeemed $150 million of the $300 million aggregate principal amount.

How was the redemption of Pembina's Series 19 Notes funded?

The redemption was funded using a portion of the $950 million raised from a recent senior unsecured medium-term notes offering.

What was the redemption price for Pembina's Series 19 Medium Term Notes?

The redemption price was approximately $1,002.19 per $1,000 principal amount, including accrued interest.

Where can detailed information about Pembina's Series 19 Notes be found?

Detailed information is available on Pembina's SEDAR+ profile.