Pembina Pipeline Corporation Announces Conversion Results for Series 9 Preferred Shares

Rhea-AI Summary

Pembina Pipeline Corporation (NYSE: PBA) announced that none of its Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 9, will convert into Series 10 Shares on December 1, 2020. The company received less than the required 1,000,000 conversion requests by the November 16 deadline, thus no conversions will occur. Pembina, based in Calgary, is a key player in the transportation and midstream services for North America's energy industry, focusing on various hydrocarbon liquids and natural gas products. Its commitment includes enhancing infrastructure connecting production to demand markets.

Positive

• Strong operational foundation with a diversified and integrated system in the energy sector.
• No dilution of existing Series 9 Shareholders by conversions to Series 10 Shares.

Negative

• Less than 1,000,000 Series 9 Shares were tendered for conversion, indicating potentially weaker interest in Series 10 Shares.

CALGARY, AB, Nov. 16, 2020 /PRNewswire/ - Pembina Pipeline Corporation ("Pembina") (TSX: PPL) (NYSE: PBA) announced today that none of Pembina's Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 9 ("Series 9 Shares") (TSX: PPL.PR.I) will be converted into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 10 of Pembina ("Series 10 Shares") on December 1, 2020.

After taking into account all the conversion notices received from holders of its outstanding Series 9 Shares by the November 16, 2020 deadline for the conversion of the Series 9 Shares into Series 10 Shares, less than the 1,000,000 Series 9 Shares required to give effect to conversions into Series 10 Shares were tendered for conversion.

About Pembina

Calgary-based Pembina Pipeline Corporation is a leading transportation and midstream service provider that has been serving North America's energy industry for more than 65 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. The Company also owns gas gathering and processing facilities; an oil and natural gas liquids infrastructure and logistics business; is growing an export terminals business; and is currently developing a petrochemical facility to convert propane into polypropylene. Pembina's integrated assets and commercial operations along the majority of the hydrocarbon value chain allow it to offer a full spectrum of midstream and marketing services to the energy sector. Pembina is committed to identifying additional opportunities to connect hydrocarbon production to new demand locations through the development of infrastructure that would extend Pembina's service offering even further along the hydrocarbon value chain. These new developments will contribute to ensuring that hydrocarbons produced in the Western Canadian Sedimentary Basin and the other basins where Pembina operates can reach the highest value markets throughout the world. 

Purpose of Pembina:

To be the leader in delivering integrated infrastructure solutions connecting global markets:

• Customers choose us first for reliable and value-added services;
• Investors receive sustainable industry-leading total returns;
• Employees say we are the 'employer of choice' and value our safe, respectful, collaborative and fair work culture; and
• Communities welcome us and recognize the net positive impact of our social and environmental commitment.

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.

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SOURCE Pembina Pipeline Corporation

FAQ

What was announced by Pembina Pipeline Corporation on November 16, 2020?

Pembina announced that none of its Series 9 Shares will convert into Series 10 Shares due to insufficient conversion requests.

What is the significance of the Series 9 and Series 10 Shares for Pembina (PBA)?

Series 9 Shares not converting to Series 10 Shares means that existing shareholders retain their current share structure without dilution.

How many Series 9 Shares were required for conversion to Series 10 Shares?

A minimum of 1,000,000 Series 9 Shares were required for conversion to take place.

What does Pembina Pipeline Corporation do?

Pembina provides transportation and midstream services for hydrocarbon liquids and natural gas products, focusing on North America.