Pembina Pipeline Corp. agreed to sell 12,000,000 of its preferred shares at C$25 per share to a syndicate of underwriters, for proceeds of about C$300 million.
The underwriters, co-led by RBC Capital Markets, CIBC World Markets and Scotiabank, purchased cumulative redeemable minimum rate reset class A preferred shares for distribution to the public. Under the terms of the preferred shares, holders would receive fixed cumulative dividends at an annual rate of $1.225 per share, payable quarterly, for the initial fixed rate period until but not including March 1, 2023.
Pembina gave the underwriters an overallotment option, exercisable at any time up to 48 hours prior to the closing of the offering, to buy up to 4,000,000 preferred shares at the same price, according to a Nov. 28 news release. Net proceeds would be used to pay down borrowings under its credit facilities, a portion of which were used to partly fund the cash consideration payable to former common shareholders of Veresen Inc. under its merger agreement.
The offering is scheduled to close on Dec. 7.
