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Pembina Pipeline Corporation announced today that it has entered into an agreement with a syndicate of underwriters, 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 9,745,000 common shares at a price of $30.80 per share, for gross proceeds of approximately $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 1,461,750 common shares for additional gross proceeds of up to $45 million. Closing of the offering is expected to occur on or about March 21, 2013. Purchasers under this offering who are shareholders of record on March 25, 2013 will be entitled to receive the Corporation’s monthly cash dividend payable on April 15, 2013 in respect of any common shares held on the record date.
Pembina intends to use the net proceeds from the offering to partially fund capital projects and to reduce short term indebtedness of the Corporation, which short term indebtedness was used to fund the Corporation\'s capital program, and for other general corporate purposes. Pembina\'s current suite of growth projects includes the construction of the Saturn I, Saturn II and Resthaven enhanced liquids extraction facilities and associated pipelines, the expansion of its crude oil, condensate and NGL pipelines and the twinning of its ethane-plus fractionator at its Redwater site, near Fort Saskatchewan, Alberta.
The common shares will be offered pursuant to a prospectus supplement under the short form base shelf prospectus filed by the Corporation on February 22, 2013 in each of the provinces of Canada and in the U.S. pursuant to applicable registration exemptions. The offering is subject to customary conditions and receipt of regulatory approvals, including approval of the TSX and the NYSE.
The common shares to be offered have not been and will not be registered under the United States Securities Act of 1933, as amended, or under any state securities laws, and may not be offered or sold within the United States except in certain transactions exempt from the registration requirements of such Act. This release does not constitute an offer to sell or a solicitation to buy such securities in the United States or in any other jurisdiction where such offer is unlawful.
