Pembina Closes $200 Mln Note Offering, Plans Series 1 Note Exchange Solicitation
(RTTNews) - Pembina Pipeline Corp. (PPL) has completed its previously announced $200 million offering of 5.95% Fixed-to-Fixed Rate Subordinated Notes, Series 2, maturing on June 6, 2055.
Proceeds from the offering will primarily fund the redemption of the company's outstanding Series 19 Class A Preferred Shares and support general corporate needs.
The Series 2 Notes were issued through a syndicate led by CIBC Capital Markets, BMO Capital Markets, and Scotiabank under Pembina's short-form base shelf prospectus dated December 13, 2023, and a supplement dated June 2, 2025.
Additionally, Pembina plans to launch a consent solicitation for holders of its $600 million Series 1 Notes due 2081. The proposal seeks to amend the existing indenture to allow these holders to exchange their Series 1 Notes for new Series 3 Notes.
These would retain the same economic terms but exclude clauses that permit conversion into preferred shares during bankruptcy-related events. Instead, Series 3 Notes would receive a payment equal to the accrued interest on the exchanged Series 1 Notes. The change would ensure equal payment rights between Series 2 and Series 3 Notes during such events.
Details of the solicitation and proposed amendments will be outlined in a forthcoming statement to Series 1 Note holders. Pembina retains full discretion over whether to initiate or alter the solicitation.
PPL is currently trading at $33.92, or 0.54% lower on the NYSE.
