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Preferred Share Description
Pembina Pipeline Corporation (PPL.PR.Q)
4.821% Cumulative, Redeemable, Rate Reset, Series 17 Preferred Share
Prospectus - October 11, 2013
DBRS Comment on proposed combination with Pembina: May 1, 2017 - DBRS today notes that Veresen Inc. and Pembina Pipeline Corporation have announced that they have agreed to combine to create one of the largest energy infrastructure companies in Canada. Under the Transaction, valued at approximately $9.7 billion, including the assumption of Veresen's debt (including subsidiary debt) and preferred shares, Pembina has offered to acquire all the issued and outstanding shares of Veresen. The Transaction is subject to approval by Veresen’s common shareholders, as well as regulatory approvals, and is expected to close late in the third quarter or early Q4 2017.
DBRS placed Veresen’s ratings Under Review with Negative Implications following the Company’s announcement that it would sell its power generation business. Today’s announcement does not have an immediate impact on the credit profile of Veresen as the Transaction is expected to close later this year. Consequently, DBRS is maintaining the Under Review with Negative Implications status on Veresen’s ratings. DBRS will review the Under Review with Negative Implications status after the sale of Veresen’s remaining power assets has closed in Q2 2017 and as more details become available with respect to the Transaction.
DBRS Credit Update: November 18, 2016 - DBRS) has today maintained its status of Under Review with Negative Implications on the BBB Issuer Rating and Senior Unsecured Notes rating and the Pfd-3 Preferred Share rating of Veresen Inc. The ratings were placed Under Review with Negative Implications on August 4, 2016, following the Company’s announcement that it will sell its power generation business, suspend its Premium Dividend and Dividend Reinvestment Plan (DRIP) from August 2016 and maintain its current dividend payout. Proceeds from the sale of the power business will be invested to develop Veresen’s midstream projects in the core natural gas and natural gas liquids infrastructure business.
Share Note: Prior to Pembina's purchase of Veresen Inc., these shares were originally issued by Veresen, as Series C shares, and they traded on the TSX under the symbol VSN.PR.C.
Dividend Note: On March 1, 2019, the company announced that the Series 17 share's annual dividend rate will be reset to 4.821%. This is a lower rate than the share's original 5.00% annual rate.
- DBRS Rating
- Pfd-3 Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $1.20525 per share per year
- Dividend Dates
- On the last day of March, June, September and December
- Dividend Details
- The dividend rate is fixed at $1.20525, per share, per year, until March 31, 2024. On March 31, 2024 and on March 31st every 5 years thereafter, the dividend will be reset at a rate that equals the sum of the Government of Canada Yield (GCAN5YR) plus 3.01%.
- The Series C preferred shares will not be redeemable prior to March 31, 2024. On March 31, 2024 and March 31st every 5 years thereafter the shares are redeemable at the company's option at $25.00 per share.
- On March 31, 2024 and on March 31st every 5 years thereafter holders of the series C rate reset preferred shares will have the option to convert all or a portion of their shares into an equal number of Series D Floating Rate preferred shares. The Series D Floating Rate preferred shares will calculate and pay dividends quarterly calculated at a rate equal to the sum of the 3-month Government of Canada T-Bill Rate plus 3.01%. In addition, on March 31, 2024 and on March 31st every 5 years thereafter holders of the Series D Floating Rate preferred shares will have the option to convert all or a portion of their shares into an equal number of the Series C Rate Reset preferred shares.
- Lead Underwriter(s)
- Scotia Capital Inc., CIBC, RBC Dominion Securities Inc., TD Securities Inc.
- Transfer Agent
- Computershare Trust Company of Canada
- Computershare Trust Company of Canada
- Dividend Reinvestment Plan
- Not available to preferred shareholders.
- Convertible by Company
- Last Updated