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Pembina Pipeline Corporation (NYSE:PBA) is issuing $1.8B in aggregate principal amount of senior unsecured medium-term notes.
The offering is divided into three tranches:
- Series 20 Notes: $600M with a fixed coupon of 5.02%, maturing on January 12, 2032.
- Series 21 Notes: $600M with a fixed coupon of 5.21%, maturing on January 12, 2034.
- Series 22 Notes: $600M with a fixed coupon of 5.67%, maturing on January 12, 2054.
The offering is expected to close on January 12, 2024.
Pembina intends to use the net proceeds for: funding a portion of the purchase price for the acquisition of Enbridge Inc.’s interests in joint ventures and related contracts; repaying indebtedness under its unsecured $1.5B revolving credit facility and for general corporate purposes.
Pembina is obligated to perform a special mandatory redemption of Series 20 and Series 21 Notes at a price of 101% of the principal amount, along with accrued interest, if the Acquisition does not close by October 1, 2024, or if certain termination events occur.