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Pembina Pipeline Corporation Announces Intention to Redeem its Series 19 Medium Term Notes

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Pembina Pipeline (TSX: PPL; NYSE: PBA) has announced its intention to redeem all outstanding Series 19 Medium Term Notes, totaling $150 million, on November 17, 2024. The redemption price will be approximately $1,023.19 per $1,000 principal amount, including accrued but unpaid interest. The company plans to fund this redemption through a combination of cash on hand and credit facility. The Series 19 Notes were originally set to mature on June 22, 2026.

Pembina Pipeline (TSX: PPL; NYSE: PBA) ha annunciato l'intenzione di riscattare tutte le note a medio termine della Serie 19, per un totale di 150 milioni di dollari, il 17 novembre 2024. Il prezzo di riscatto sarà di circa 1.023,19 dollari per 1.000 dollari di valore nominale, compresi interessi accumulati ma non pagati. La società prevede di finanziare questo riscatto attraverso una combinazione di liquidità disponibile e linee di credito. Le note della Serie 19 erano originariamente destinate a scadere il 22 giugno 2026.

Pembina Pipeline (TSX: PPL; NYSE: PBA) ha anunciado su intención de redimir todas las Notas a Mediano Plazo de la Serie 19, que suman 150 millones de dólares, el 17 de noviembre de 2024. El precio de redención será aproximadamente de 1.023,19 dólares por cada 1.000 dólares de monto principal, incluyendo intereses acumulados pero no pagados. La compañía planea financiar esta redención a través de una combinación de efectivo disponible y líneas de crédito. Las Notas de la Serie 19 estaban originalmente programadas para vencer el 22 de junio de 2026.

펨비나 파이프라인 (TSX: PPL; NYSE: PBA)은 1억 5천만 달러에 달하는 19호 중기 부채증권을 2024년 11월 17일에 상환할 것이라고 발표했습니다. 상환 가격은 이자 미지급 금액을 포함하여 약 1,023.19달러 per 1,000달러의 원금에 해당합니다. 회사는 현금 보유액과 신용 시설을 조합하여 이번 상환 자금을 조달할 계획입니다. 19호 부채증권은 원래 2026년 6월 22일에 만료될 예정이었습니다.

Pembina Pipeline (TSX: PPL; NYSE: PBA) a annoncé son intention de racheter toutes les Obligations à Moyen Terme de Série 19, totalisant 150 millions de dollars, le 17 novembre 2024. Le prix de rachat sera d'environ 1 023,19 dollars pour 1 000 dollars de montant principal, y compris les intérêts courus mais non payés. La société prévoit de financer ce rachat par une combinaison de liquidités disponibles et de lignes de crédit. Les Obligations de Série 19 devaient initialement arriver à échéance le 22 juin 2026.

Pembina Pipeline (TSX: PPL; NYSE: PBA) hat seine Absicht bekannt gegeben, alle ausstehenden Mittelstandsnoten der Serie 19, insgesamt 150 Millionen US-Dollar, am 17. November 2024 einzulösen. Der Rücknahmepreis beträgt ungefähr 1.023,19 US-Dollar pro 1.000 US-Dollar Nennbetrag, einschließlich aufgelaufener, aber nicht gezahlter Zinsen. Das Unternehmen plant, diese Rückzahlung durch eine Kombination aus liquiden Mitteln und Kreditlinien zu finanzieren. Die Serie 19 Noten sollten ursprünglich am 22. Juni 2026 fällig werden.

Positive
  • Early debt retirement demonstrates strong cash position and financial flexibility
  • Proactive debt management may lead to reduced interest expenses
Negative
  • Utilization of credit facility for redemption may increase short-term borrowing costs

Insights

Pembina Pipeline's early redemption of $150 million Series 19 Notes reflects proactive debt management. The $1,023.19 per $1,000 redemption price includes a premium and accrued interest, suggesting favorable financing conditions. Using cash reserves and credit facilities for redemption indicates strong liquidity position. This refinancing move could potentially lower interest expenses and improve debt structure, though the impact on overall financials is modest given Pembina's $23.9 billion market cap. The early redemption timing, about 1.5 years before maturity, suggests management's confidence in maintaining strong cash flows and accessing favorable financing alternatives if needed.

CALGARY, Alberta--(BUSINESS WIRE)-- Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA) announced today that it intends to exercise its option to redeem all of its outstanding $150,000,000 aggregate principal amount of senior unsecured medium-term notes, series 19 (the "Series 19 Notes") due June 22, 2026 for cash on November 17, 2024 (the "Redemption Date") at a redemption price of approximately $1,023.19 for each $1,000 principal amount of Series 19 Notes, being equal to the outstanding principal amount thereof, plus accrued but unpaid interest thereon to, but excluding, the Redemption Date (the "Redemption"). The Redemption will be funded through a combination of cash on hand and use of the Company’s credit facility.

Additional terms and conditions regarding the Redemption will be provided in the notice of the Redemption to be delivered to CDS Clearing and Depository Services Inc. ("CDS"), the sole registered holder of the Series 19 Notes, in accordance with the trust indenture governing the Series 19 Notes. Non-registered holders of Series 19 Notes who maintain their interest through CDS should contact their CDS customer service representative with any questions about the Redemption. Alternatively, non-registered holders of Series 19 Notes with any questions about the Redemption should contact the broker or other financial intermediary who holds interests in the Series 19 Notes on their behalf.

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.

Forward-Looking Information and Statements

This news release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements"), including forward-looking statements within the meaning of the "safe harbor" provisions of applicable securities legislation that are based on Pembina's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as "expect", "intend", "will", "shall", and similar expressions suggesting future events or future performance.

In particular, this news release contains forward-looking statements relating to the Redemption, including the occurrence and timing thereof, as well as Pembina's intentions with respect to funding the Redemption. These forward-looking statements are based on certain assumptions that Pembina has made in respect thereof as at the date of this news release, including: oil and gas industry exploration and development activity levels and the geographic region of such activity; that favourable market conditions exist; the success of Pembina's operations; prevailing commodity prices, interest rates, carbon prices, tax rates and exchange rates; the ability of Pembina to maintain current credit ratings; the availability of capital to fund future capital requirements relating to existing assets and projects; future operating costs; geotechnical and integrity costs; that all required regulatory and environmental approvals can be obtained on the necessary terms in a timely manner; prevailing regulatory, tax and environmental laws and regulations; maintenance of operating margins; and certain other assumptions in respect of Pembina's forward-looking statements detailed in Pembina's Annual Information Form for the year ended December 31, 2023 (the "AIF") and Management's Discussion and Analysis for the year ended December 31, 2023 (the "Annual MD&A"), which were each filed on SEDAR+ on February 22, 2024, in Pembina's Management's Discussion and Analysis for the three months and nine months ended September 30, 2024 (the "Interim MD&A"), which was filed on SEDAR+ on November 5, 2024, and from time to time in Pembina's public disclosure documents available at www.sedarplus.ca, www.sec.gov and through Pembina's website at www.pembina.com.

These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties, including, but not limited to: the regulatory environment and decisions and Indigenous and landowner consultation requirements; the impact of competitive entities and pricing; reliance on third parties to successfully operate and maintain certain assets; the strength and operations of the oil and natural gas production industry and related commodity prices; non-performance or default by counterparties to agreements with Pembina or one or more of its affiliates; actions taken by governmental or regulatory authorities; the ability of Pembina to acquire or develop the necessary infrastructure in respect of future development projects; fluctuations in operating results; adverse general economic and market conditions in Canada, North America and worldwide; the ability to access various sources of debt and equity capital; changes in credit ratings; counterparty credit risk; and certain other risks and uncertainties detailed in the AIF, Annual MD&A, Interim MD&A and from time to time in Pembina's public disclosure documents available at www.sedarplus.ca, www.sec.gov and through Pembina's website at www.pembina.com. In addition, closing of the Redemption may not occur, or may be delayed, if the conditions to the Redemption are not satisfied on the anticipated timeline or at all. Accordingly, there is a risk that the Redemption will not be completed within the anticipated time, on the terms currently proposed, or at all. The Company's expectations with respect to funding the Redemption may change if management or the board of directors of Pembina determines that it would be in the best interests of Pembina to utilize other sources of funding.

Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected. The forward-looking statements contained in this news release are expressly qualified by the above statements. Pembina does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws.

For further information:

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 redemption price for Pembina Pipeline's (PBA) Series 19 Notes?

Pembina Pipeline will redeem the Series 19 Notes at approximately $1,023.19 for each $1,000 principal amount, including accrued but unpaid interest.

When will Pembina Pipeline (PBA) redeem its Series 19 Medium Term Notes?

Pembina Pipeline will redeem the Series 19 Medium Term Notes on November 17, 2024.

How much is the total value of Series 19 Notes being redeemed by Pembina Pipeline (PBA)?

Pembina Pipeline is redeeming $150,000,000 in aggregate principal amount of Series 19 Notes.

How will Pembina Pipeline (PBA) fund the Series 19 Notes redemption?

Pembina Pipeline will fund the redemption through a combination of cash on hand and use of the company's credit facility.

PEMBINA PIPELINE CORPORATION

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