DBRS Assigns Final Rating of Pfd-3 to Pembina Pipeline Corporation’s Series 1 Preferred Shares, Stable Trend

DBRS has today assigned a final rating of Pfd-3 with a Stable trend to the $250 million Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 1 (the Series 1 Preferred Shares) issued by Pembina Pipeline Corporation (Pembina or the Company).

The holders of Series 1 Preferred Shares will be entitled to receive fixed cumulative dividends at an annual rate of $1.0625 per share, payable quarterly on the 1st day of March, June, September and December, as and when declared by the Board of Directors of Pembina, yielding 4.25% per annum, for the initial fixed rate period to but excluding December 1, 2018. The first quarterly dividend payment date is scheduled for December 1, 2013. The dividend rate will reset on December 1, 2018, and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 2.47%. The Series 1 Preferred Shares are redeemable by Pembina, at its option, on December 1, 2018, and on December 1 of every fifth year thereafter at a price of $25.00 per share plus accrued and unpaid dividends.

The Series 1 Preferred Shares will not be redeemable prior to December 1, 2018.

It is DBRS’s understanding that the net proceeds of the issuance of the Series 1 Preferred Shares will be used by Pembina to partially fund capital projects, to reduce short-term indebtedness and for other general corporate purposes of the Company and its affiliates.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodologies are Rating North American Pipeline and Diversified Energy Companies (May 2011) and DBRS Criteria: Preferred Share and Hybrid Criteria for Corporate Issuers, which can be found on our website under Methodologies.