Pembina Pipeline Corporation Announces New Credit Facility, Declares Dividends, Announces First Quarter 2020 Results Conference Call and Webcast and Provides Update on Virtual Annual General Meeting
April 6, 20204:30 AM PR Newswire
CALGARY – Pembina Pipeline Corporation (“Pembina” or the “Company”) (TSX: PPL; NYSE: PBA) announced today that it has entered into a new $800 million unsecured revolving credit facility. The Company further announced that its Board of Directors has declared a common share cash dividend for April 2020 of $0.21 per share and quarterly dividends for the Company’s preferred shares. New Unsecured Revolving Credit Facility Pembina has entered into a new $800 million unsecured revolving credit facility (the “Facility”) with certain existing key lenders. The Facility will be available to Pembina for general corporate purposes, thereby providing additional liquidity and flexibility should it be required. The Facility will have an initial term of two years. The other terms and conditions of the Facility, including financial covenants, are substantially similar to Pembina’s existing $2.5 billion revolving credit facility. With the addition of the Facility, Pembina now has $3.3 billion in revolving credit facility capacity and approximately $2.3 billion in available cash and unutilized debt facilities. Further, over the next two years, Pembina’s debt maturities are modest and include $73 million in 2020 and $800 million distributed across three instruments throughout 2021. “In today’s challenging and uncertain environment, ensuring ample liquidity is of utmost importance and I would like to acknowledge and thank our key lender group for their swift response. We enjoy productive, long-term relationships with our lenders and value their deep understanding of our business,” stated Scott Burrows, Pembina’s Senior Vice President and Chief Financial Officer. “Over the past two weeks we have taken decisive and unprecedented action to preserve our strong balance sheet, protect our BBB credit rating and ensure we have the liquidity to fund our business until market conditions stabilize,” added Mr. Burrows. Common and Preferred Share Dividends The common share cash dividend for April 2020 of $0.21 per share will be paid, subject to applicable law, on May 15, 2020 to shareholders of record on April 24, 2020. For shareholders receiving their common share dividends in U.S. funds, the April 2020 cash dividend is expected to be approximately U.S. $0.1485 per share (before deduction of any applicable Canadian withholding tax) based on a currency exchange rate of 0.7071. The actual U.S. dollar dividend will depend on the Canadian/U.S. dollar exchange rate on the payment date and will be subject to applicable withholding taxes. The common share dividends are designated “eligible dividends” for Canadian income tax purposes. For non-resident shareholders, Pembina’s common share dividends should be considered “qualified dividends” and may be subject to Canadian withholding tax. Pembina’s Board of Directors also declared quarterly dividends for the Company’s preferred shares, Series 1, 3, 5, 7, 9, 11, 13, 15, 17, 19, 21, 23 and 25. Series 1, 3, 5, 7, 9, 11, 13 and 21 preferred share dividends are payable on June 1, 2020 to shareholders of record on May 1, 2020. Series 15, 17 and 19 preferred share dividends are payable on June 30, 2020 to shareholders of record on June 15, 2020. Series 23 and 25 preferred share dividends are payable on May 15, 2020 to shareholders of record on April 30, 2020. Series Dividend Amount Preferred Shares, Series 1 (PPL.PR.A) $0.306625 Preferred Shares, Series 3 (PPL.PR.C) $0.279875 Preferred Shares, Series 5 (PPL.PR.E) $0.285813 Preferred Shares, Series 7 (PPL.PR.G) $0.273750 Preferred Shares, Series 9 (PPL.PR.I) $0.296875 Preferred Shares, Series 11 (PPL.PR.K) $0.359375 Preferred Shares, Series 13 (PPL.PR.M) $0.359375 Preferred Shares, Series 15 (PPL.PR.O) $0.279000 Preferred Shares, Series 17 (PPL.PR.Q) $0.301313 Preferred Shares, Series 19 (PPL.PR.S) $0.312500 Preferred Shares, Series 21 (PPL.PF.A) $0.306250 Preferred Shares, Series 23 (PPL.PF.C) $0.328125 Preferred Shares, Series 25 (PPL.PF.E) $0.325000 Confirmation of Record and Payment Date Policy Pembina pays cash dividends on its common shares in Canadian dollars on a monthly basis to shareholders of record on the 25th calendar day of each month (except for the December record date, which is December 31st), if, as and when determined by the Board of Directors. Should the record date fall on a weekend or a statutory holiday, the effective record date will be the previous business day. The dividend payment date is the 15th calendar day of the month following the record date. Should the payment date fall on a weekend or on a statutory holiday, the business day prior to the weekend or statutory holiday becomes the payment date. Dividends on the preferred shares Series 1, 3, 5, 7, 9, 11, 13 and 21 are payable on the first calendar day of March, June, September and December in each year, if, as and when declared by the Board of Directors to shareholders of record on the first calendar day of the preceding month, or, if such payment or record date is not a business day, the next succeeding business day after the weekend or statutory holiday. Dividends on the preferred shares Series 15, 17 and 19 are payable on the last calendar day of March, June, September and December in each year, if, as and when declared by the Board of Directors to shareholders of record on the 15th calendar day of the same month, or, if such payment or record date is not a business day, the next succeeding business day after the weekend or statutory holiday. Dividends on the preferred shares Series 23 and 25 are payable on the 15th day of February, May, August and November in each year, if, as and when declared by the Board of Directors to shareholders of record on the last business day of the preceding month, or, if such payment or record date is not a business day, the next succeeding business day after the weekend or statutory holiday. Conference Call and Webcast Details for First Quarter 2020 Results Pembina will release its first quarter 2020 results on Thursday, May 7, 2020 after markets close. A conference call and webcast have been scheduled for Friday, May 8, 2020, at 8:00 a.m. MT (10:00 a.m. ET) for interested investors, analysts, brokers and media representatives. The conference call dial-in numbers for Canada and the U.S. are 647-427-7450 or 888-231-8191. A recording of the conference call will be available for replay until May 15, 2020 at 11:59 p.m. ET. To access the replay, please dial either 416-849-0833 or 855-859-2056 and enter the password 3298148. A live webcast of the conference call can be accessed on Pembina’s website at www.pembina.com under Investor Centre, Presentation & Events, or by entering: https://produceredition.webcasts.com/starthere.jsp?ei=1290098&tp_key=0acdce5bbf in your web browser. Shortly after the call, an audio archive will be posted on the website for a minimum of 90 days. Annual General Meeting of Common Shareholders The Company will hold its Annual General Meeting of common shareholders (“AGM”) on Friday, May 8, 2020 at 2:00 p.m. MT (4:00 p.m. ET). The AGM will he held as a virtual-only meeting, which will be conducted via live audio webcast at https://web.lumiagm.com/119921742. Participants are recommended to register for the virtual webcast at least 10 minutes before the presentation start time. A copy of the AGM presentation can be accessed on Pembina’s website at www.pembina.com under Investor Centre, Presentation & Events. For further information on Pembina’s virtual AGM, kindly visit the Shareholder Information page under the Investor Centre tab at www.pembina.com. About Pembina Calgary-based Pembina Pipeline Corporation is a leading transportation and midstream service provider that has been serving North America’s energy industry for 65 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. The Company also owns gas gathering and processing facilities; an oil and natural gas liquids infrastructure and logistics business; is growing an export terminals business; and is currently developing a petrochemical facility to convert propane into polypropylene. Pembina’s integrated assets and commercial operations along the majority of the hydrocarbon value chain allow it to offer a full spectrum of midstream and marketing services to the energy sector. Pembina is committed to identifying additional opportunities to connect hydrocarbon production to new demand locations through the development of infrastructure that would extend Pembina’s service offering even further along the hydrocarbon value chain. These new developments will contribute to ensuring that hydrocarbons produced in the Western Canadian Sedimentary Basin and the other basins where Pembina operates can reach the highest value markets throughout the world. Purpose of Pembina: To be the leader in delivering integrated infrastructure solutions connecting global markets: Customers choose us first for reliable and value-added services;Investors receive sustainable industry-leading total returns;Employees say we are the ’employer of choice’ and value our safe, respectful, collaborative and fair work culture; andCommunities welcome us and recognize the net positive impact of our social and environmental commitment. Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division. Pembina’s common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. For more information, visit www.pembina.com.