Pembina Pipeline Corporation announced that it will not redeem the outstanding Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 5 on June 1, 2024.
Instead, holders of the Series 5 Shares will have the option to convert them into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 6 of Pembina on a one-for-one basis on June 1, 2024 (the “Conversion Date”). If fewer than 1,000,000 Series 5 Shares remain outstanding after the conversion, they will automatically convert into Series 6 Shares. Conversely, if there are fewer than 1,000,000 Series 6 Shares outstanding after the conversion, no Series 5 Shares will be converted.
For any Series 5 Shares that remain outstanding after the Conversion Date, holders will receive quarterly fixed cumulative preferential cash dividends, with an annual dividend rate of 6.814 percent from June 1, 2024, to May 31, 2029.
For Series 6 Shares issued on the Conversion Date, holders will receive quarterly floating rate cumulative preferential cash dividends, starting at 7.940 percent for the period from June 1, 2024, to August 31, 2024. The Floating Quarterly Dividend Rate will reset quarterly.
Beneficial holders wishing to convert their Series 5 Shares should act by May 17, 2024. The dividend payable on June 1, 2024, to Series 5 Shareholders will be $0.285813 per share, with payment on June 3, 2024.
For more information visit www.pembina.com
