Pembina Pipeline Corporation Announces Conversion Results for Series 5 Preferred Shares

Rhea-AI Summary

Pembina Pipeline (TSX: PPL; NYSE: PBA) announced that no conversions of its Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 5 (TSX: PPL.PR.E), will occur into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 6, on June 1, 2024. This decision follows the insufficient number of conversion notices received by the May 17, 2024, deadline. Less than the 1,000,000 Series 5 Shares required for conversion to Series 6 Shares were tendered. The full press release, including multimedia, is available on Business Wire's website.

Positive

• Retention of Series 5 Shares stabilizes dividend expectations for investors holding Series 5 Shares.
• No conversion helps maintain the current dividend rate for Series 5 shareholders.
• Prevents the potential financial uncertainty that might arise from floating rate shares.

Negative

• Lack of conversion indicates potential lack of investor interest in Series 6 Shares.
• Could signal investor concerns about the floating rate share's future performance.
• May reflect broader market uncertainty or lack of confidence in alternative investment options offered by Pembina.

CALGARY, Alberta--(BUSINESS WIRE)-- Pembina Pipeline Corporation ("Pembina") (TSX: PPL; NYSE: PBA) announced today that none of Pembina's Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 5 ("Series 5 Shares") (TSX: PPL.PR.E) will be converted into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 6 of Pembina ("Series 6 Shares") on June 1, 2024.

After taking into account all the conversion notices received from holders of its outstanding Series 5 Shares by the May 17, 2024 deadline for the conversion of the Series 5 Shares into Series 6 Shares, less than the 1,000,000 Series 5 Shares required to give effect to conversions into Series 6 Shares were tendered for conversion.

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/20240517172479/en/

Investor Relations

(403) 231-3156

1-855-880-7404

e-mail: investor-relations@pembina.com

www.pembina.com

Source: Pembina Pipeline Corporation

FAQ

What is the impact of Pembina's Series 5 shares not converting?

The lack of conversion means that all Series 5 Shares will remain as is, maintaining their current dividend rate and conditions.

What was the deadline for converting Pembina's Series 5 shares?

The deadline for conversion notices was May 17, 2024.

Why were Pembina's Series 5 shares not converted into Series 6 shares?

Less than the required 1,000,000 Series 5 Shares were tendered for conversion into Series 6 Shares.

What is the significance of retaining Pembina's Series 5 shares?

Retaining Series 5 Shares ensures dividend stability for shareholders and avoids potential fluctuations from floating rates.