Pembina Pipeline Corp. Solicits Consent for Series 1 Subordinated Notes Amendments
- Pembina Pipeline is soliciting consent from Series 1 Noteholders for amendments to its Subordinated Notes due January 2081.
- A minimum of 66 2/3% consent is required, with deadlines for submissions set for July 2025.
- Pembina is introducing Series 3 Notes to enhance debt appeal while maintaining strong relationships with its investors.
Pembina Pipeline Initiates Consent and Proxy Solicitation for Subordinated Notes
Pembina Pipeline Corporation ("Pembina") is actively engaging its Series 1 Noteholders in a Consent and Proxy Solicitation process regarding its 4.80% Fixed-to-Fixed Rate Subordinated Notes, Series 1, which are set to mature on January 25, 2081. This solicitation aims to secure the necessary approval for proposed amendments to the Series 1 Note Indenture established on January 25, 2021. The engagement is prompted by the need for adjustments that align with Pembina's evolving financial strategy and operational goals. Should the solicitation not achieve the requisite support, a meeting for the Series 1 Noteholders is scheduled for July 28, 2025, in Calgary, highlighting Pembina's commitment to transparency and stakeholder involvement in decision-making processes.
To successfully pass the Extraordinary Resolution required for the amendments, Pembina requires a minimum of 66 2/3% consent from the aggregate principal amount of the outstanding Series 1 Notes. This consent can be obtained either through written submissions or direct participation in the upcoming meeting. Pembina sets specific deadlines for these submissions, with written consents due by July 22, 2025, and proxy votes by July 24, 2025. The proposed amendments could have significant implications for Series 1 Noteholders, particularly concerning capital gains or losses for those who choose not to grant their consent. This aspect underscores the importance of informed decision-making among investors in the context of these financial instruments.
In addition to the Series 1 Notes, Pembina announces the introduction of Series 3 Notes, which will mirror the terms of the Series 1 Notes but differ in that they will not permit the delivery of preferred shares under certain bankruptcy scenarios. This differentiation reflects Pembina's proactive approach to managing its liabilities and enhancing the appeal of its debt instruments. As Pembina navigates this Consent and Proxy Solicitation, it retains the authority to amend or withdraw the solicitation as deemed necessary, ensuring that the process aligns with its strategic financial objectives and the best interests of its stakeholders.
In related developments, Pembina's transparent communication and structured engagement with its investors demonstrate the company's commitment to maintaining strong relationships with its debt holders. The careful management of its subordinated notes, alongside the introduction of new financial instruments, positions Pembina favorably within the competitive pipeline industry landscape. As the company prepares for the upcoming deadlines, it continues to prioritize stakeholder interests while advancing its long-term growth strategies.
