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

DBRS has today assigned a rating of Pfd-3 with a Stable trend to the $150 million Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 3 (the Series 3 Preferred Shares) issued by Pembina Pipeline Corporation (Pembina or the Company).

The holders of Series 3 Preferred Shares will be entitled to receive fixed cumulative dividends at an annual rate of $1.1750 per share, payable quarterly on the 1st day of March, June, September and December in each year. Assuming an issue date of October 2, 2013, the first quarterly dividend payment date, if declared, is scheduled for December 1, 2013. The dividend rate will reset on March 1, 2019, and every five years thereafter at a rate equal to the sum of the then five-year Government of Canada bond yield plus 2.60%. The Series 3 Preferred Shares are redeemable by Pembina, at its option, on March 1, 2019, and on March 1 of every fifth year thereafter at a price of $25.00 per share plus accrued and unpaid dividends.

The Series 3 Preferred Shares will not be redeemable prior to March 1, 2019.

It is DBRS’s understanding that the net proceeds of the Offering will be used by Pembina to partially fund capital projects, to reduce short term indebtedness of the Company under its credit facilities, which short term indebtedness was incurred to fund Pembina's capital program, including expenditures related to Pembina’s current expansion and growth capital projects, and for other general corporate purposes.

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

The applicable methodology is Rating North American Pipeline and Diversified Energy Companies (May 2011), which can be found on our website under Methodologies.