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‘Bought deal’ for Pembina

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World Pipelines,

Pembina Pipeline Corporation announced that it has entered into an agreement with a syndicate of underwriters, co-led by Scotiabank and RBC Capital Markets, pursuant to which the underwriters have agreed to purchase from Pembina on a ‘bought deal’ basis and sell to the public 8 825 000 common shares at a price of CAN$34.00 per share, for gross proceeds of approximately CAN$300 million.

Pembina has also granted the underwriters an over-allotment option to purchase, on the same terms and exercisable not more than 30 days after the closing of the offering, up to an additional 1 323 750 common shares for additional gross proceeds of up to CAN$45 million. Closing of the offering is expected to occur on or about 29 March 2016, in which case purchasers under this offering who are shareholders of record on 25 April 2016 (Record Date) will be entitled to receive the company's monthly cash dividend payable on 13 May 2016 in respect of any common shares held on the Record Date.

Pembina intends to use the net proceeds from the offering, together with funds available under the Company's existing credit facilities to finance the purchase price for its proposed acquisition of certain natural gas processing assets from Paramount Resources.

The common shares will be offered pursuant to a prospectus supplement under the short form base shelf prospectus filed by the Company on 18 March 2015 in each of the provinces of Canada (collectively, the ‘prospectus’) and in the US pursuant to applicable registration exemptions. The offering of common shares is made only by the prospectus. The prospectus will contain important detailed information about the securities being offered. Investors should read the prospectus before making an investment decision.

Edited from source by Stephanie Roker

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