Pembina Pipeline Corp. (PPL) has completed its previously announced $200 million offering of 5.95% Fixed-to-Fixed Rate Subordinated Notes, Series 2, maturing on June 6, 2055.
Proceeds from the offering will primarily fund the redemption of the company's outstanding Series 19 Class A Preferred Shares and support general corporate needs.
The Series 2 Notes were issued through a syndicate led by CIBC Capital Markets, BMO Capital Markets, and Scotiabank under Pembina's short-form base shelf prospectus dated December 13, 2023, and a supplement dated June 2, 2025.
Additionally, Pembina plans to launch a consent solicitation for holders of its $600 million Series 1 Notes due 2081. The proposal seeks to amend the existing indenture to allow these holders to exchange their Series 1 Notes for new Series 3 Notes.
These would retain the same economic terms but exclude clauses that permit conversion into preferred shares during bankruptcy-related events. Instead, Series 3 Notes would receive a payment equal to the accrued interest on the exchanged Series 1 Notes. The change would ensure equal payment rights between Series 2 and Series 3 Notes during such events.
Details of the solicitation and proposed amendments will be outlined in a forthcoming statement to Series 1 Note holders. Pembina retains full discretion over whether to initiate or alter the solicitation.
PPL is currently trading at $33.92, or 0.54% lower on the NYSE.
For comments and feedback contact: editorial@rttnews.com
Business News
May 15, 2026 15:25 ET Apart from the confirmation of Kevin Warsh as the next Fed chair, the main news on the economics front this week included key price data from the U.S. and the first quarter economic growth figures from major economies. Both consumer prices and producer costs have started to reflect the effect of supply shocks due to the Middle East conflict. In Europe, GDP data was in focus, while inflation data from China dominated the news flow in Asia.