Pembina Pipeline Corporation is pleased to announce that it has closed its previously announced public offering of cumulative redeemable minimum rate reset class A preferred shares, Series 11 (Series 11 Preferred Shares) for aggregate gross proceeds of CAN$170 million.
The offering was announced on 6 January 2016 when Pembina entered into an agreement with a syndicate of underwriters led by Scotiabank, BMO Capital Markets and RBC Capital Markets. A total of 6 800 000 Series 11 Preferred Shares, which includes 800 000 Series 11 Preferred Shares issued pursuant to the partial exercise of the underwriters' option, were sold under the offering.
Proceeds from the offering will be used to reduce indebtedness under the Company's credit facilities, as well as for capital expenditures and working capital requirements in connection with the company's 2016 capital programme.
Dividends on the Series 11 Preferred Shares are expected to be CAN$1.4375 per share annually, payable quarterly on the 1st day of March, June, September and December, as and when declared by the Board of Directors of Pembina, for the initial fixed rate period to but excluding 1 March 2021.
Concurrently with the closing of the offering, Pembina's Board of Directors has declared the initial quarterly dividend for the Series 11 Preferred Shares in the amount of CAN$0.1812, for the period of 15 January 2016 to 1 March 2016. The dividend will be payable on 1 March 2016, to shareholders of record on 1 February 2016.
All of Pembina's dividends are designated ‘eligible dividends’ for Canadian income tax purposes.
Edited from source by Stephanie Roker
Read the article online at: https://www.worldpipelines.com/business-news/18012016/pembina-shares-update/