Pembina Pipeline Corporation (Pembina or the Company) has announced that it has entered into a new CAN$800 million unsecured revolving credit facility. The Company further announced that its Board of Directors has declared a common share cash dividend for April 2020 of CAN$0.21 per share and quarterly dividends for the Company's preferred shares.
New unsecured revolving credit facility
Pembina has entered into a new CAN$800 million unsecured revolving credit facility (the Facility) with certain existing key lenders. The Facility will be available to Pembina for general corporate purposes, thereby providing additional liquidity and flexibility should it be required. The Facility will have an initial term of two years. The other terms and conditions of the Facility, including financial covenants, are substantially similar to Pembina's existing CAN$2.5 billion revolving credit facility.
With the addition of the Facility, Pembina now has CAN$3.3 billion in revolving credit facility capacity and approximately CAN$2.3 billion in available cash and unutilised debt facilities. Further, over the next two years, Pembina's debt maturities are modest and include CAN$73 million in 2020 and $800 million distributed across three instruments throughout 2021.
"In today's challenging and uncertain environment, ensuring ample liquidity is of utmost importance and I would like to acknowledge and thank our key lender group for their swift response. We enjoy productive, long-term relationships with our lenders and value their deep understanding of our business," stated Scott Burrows, Pembina's Senior Vice President and Chief Financial Officer. "Over the past two weeks we have taken decisive and unprecedented action to preserve our strong balance sheet, protect our BBB credit rating and ensure we have the liquidity to fund our business until market conditions stabilise," added Mr. Burrows.
Common and preferred share dividends
The common share cash dividend for April 2020 of CAN$0.21 per share will be paid, subject to applicable law, on 15 May 2020 to shareholders of record on 24 April 2020.
For shareholders receiving their common share dividends in US funds, the April 2020 cash dividend is expected to be approximately US$0.1485 per share (before deduction of any applicable Canadian withholding tax) based on a currency exchange rate of 0.7071. The actual US dollar dividend will depend on the Canadian/US dollar exchange rate on the payment date and will be subject to applicable withholding taxes.
The common share dividends are designated ‘eligible dividends’ for Canadian income tax purposes. For non-resident shareholders, Pembina's common share dividends should be considered "qualified dividends" and may be subject to Canadian withholding tax.
Pembina's Board of Directors also declared quarterly dividends for the Company's preferred shares, Series 1, 3, 5, 7, 9, 11, 13, 15, 17, 19, 21, 23 and 25. Series 1, 3, 5, 7, 9, 11, 13 and 21 preferred share dividends are payable on 1 June 2020 to shareholders of record on 1 May 2020. Series 15, 17 and 19 preferred share dividends are payable on 30 June 2020 to shareholders of record on 15 June 2020. Series 23 and 25 preferred share dividends are payable on 15 May 2020 to shareholders of record on 30 April 2020.
Read the article online at: https://www.worldpipelines.com/business-news/07042020/pembina-pipeline-corporation-announces-updates/
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