Pembina Pipeline Corporation Provides Notice of Series 3 Preferred Share Conversion Right and Announces Reset Dividend Rates

CALGARY, Alberta, Jan. 30, 2019 /PRNewswire/ -- Pembina Pipeline Corporation ("Pembina") (TSX: PPL; NYSE: PBA) announced today that it does not intend to exercise its right to redeem the currently outstanding Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 3 ("Series 3 Shares") (TSX: PPL.PR.A) on March 1, 2019 (the "Conversion Date").

As a result, and subject to certain terms of the Series 3 Shares, as described in the prospectus supplement dated September 25, 2013 relating to the issuance of the Series 3 Shares, the holders of the Series 3 Shares will have the right to elect to convert all or any of their Series 3 Shares into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 4 of Pembina ("Series 4 Shares") on the basis of one Series 4 Share for each Series 3 Share on the Conversion Date.

With respect to any Series 3 Shares that remain outstanding after March 1, 2019, holders thereof will be entitled to receive quarterly fixed cumulative preferential cash dividends, if, as and when declared by the Board of Directors of Pembina.  The annual dividend rate for the Series 3 Shares for the five-year period from and including March 1, 2019 to, but excluding, March 1, 2024 will be 4.478%, being equal to the five-year Government of Canada bond yield of 1.878% determined as of today plus 2.60%, in accordance with the terms of the Series 3 Shares.

With respect to any Series 4 Shares that may be issued on March 1, 2019, holders thereof will be entitled to receive quarterly floating rate cumulative preferential cash dividends, if, as and when declared by the Board of Directors of Pembina.  The annual dividend rate for the 3-month floating rate period from and including March 1, 2019 to, but excluding, June 1, 2019 will be 4.227%, being equal to the annual rate of interest for the most recent auction of 90-day Government of Canada treasury bills of 1.627% plus 2.60%, in accordance with the terms of the Series 4 Shares (the "Floating Quarterly Dividend Rate").  The Floating Quarterly Dividend Rate will be reset every quarter.

As provided in the terms of the Series 3 Shares: (i) if Pembina determines that there would remain outstanding immediately following the conversion less than 1,000,000 Series 3 Shares, all remaining Series 3 Shares will be converted automatically into Series 4 Shares on a one-for-one basis effective March 1, 2019; or (ii) if Pembina determines that there would remain outstanding immediately following the conversion, less than 1,000,000 Series 4 Shares, holders of Series 3 Shares will not be entitled to convert their Series 3 Shares into Series 4 Shares on the Conversion Date.  There are currently 6,000,000 Series 3 Shares outstanding.