Pembina Pipeline Corporation 7.35% Convertible Debentures to Mature December 31, 2010
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CALGARY, Nov. 29 /CNW/ - Pembina Pipeline Corporation ("Pembina" or the "Corporation") (TSX: PPL) announced today the upcoming maturity of its 7.35% convertible unsecured subordinate debentures (TSX: PPL.DB.B) (the "Debentures"). The Debentures, issued on June 11, 2003, are due and payable on the maturity date of December 31, 2010 (the "Maturity Date"). As of the Maturity Date, interest will cease to accrue.
The Debentures were issued under a Trust Indenture dated as of March 21, 2001 between the Corporation (as successor to Pembina Pipeline Income Fund) and Computershare Trust Company of Canada (as successor to Montreal Trust Company of Canada) as trustee (the "Trustee"), as supplemented by the First Supplemental Indenture dated December 4, 2001, the Second Supplemental Indenture dated June 19, 2003 and third Third Supplemental Indenture dated October 1, 2010 (collectively, the "Indenture''). On the Maturity Date, Pembina intends to repay the indebtedness represented by the Debentures by paying to the Debenture Trustee in cash an amount equal to the principal amount of the outstanding Debentures, together with accrued and unpaid interest. The Trustee, on behalf of the Corporation, will pay to each holder entitled to receive payment the principal amount of, and all accrued and unpaid interest on, the Debentures upon surrender of the Debentures at the address of the Trustee and such Debentures will thereafter to that extent not be considered as outstanding under the Indenture and such holder will have no other right in regard thereto.
As described in the Indenture, prior to the Maturity Date, the conversion price for the Debentures is $12.50, such that approximately 80 common shares shall be issued for each $1,000 principal amount of Debentures. In the event the Debentures are not converted by holders prior to 12:00 pm Eastern Daylight Savings Time on December 30, 2010, Pembina will proceed to repay the indebtedness in cash as outlined above.
Pembina Pipeline Corporation transports crude oil and natural gas liquids produced in Western Canada, owns and operates oil sands pipelines and has a growing presence in midstream and natural gas services sectors.
Forward-Looking Information and Statements
This news release contains certain forward-looking information and statements ("forward-looking statements") that are based on Pembina's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In this news release, such forward-looking statements can be identified by terminology such as "will", "shall" and similar expressions.
In particular, this document contains certain forward-looking statements made by Pembina with respect to repayment of the outstanding Debentures based on certain assumptions that Pembina has made in respect thereof as at the date of this document. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties, including, but not limited to: non-performance of agreements in accordance with their terms; the impact of competitive entities and pricing; reliance on key industry partners, alliances and agreements; the strength and operations of the oil and natural gas production industry and related commodity prices; the continuation or completion of third-party projects; regulatory environment and inability to obtain required regulatory approvals; tax laws and treatment; fluctuations in operating results; the ability of Pembina to raise sufficient capital to complete future projects and satisfy future commitments; construction delays; labour and material shortages; and certain other risks detailed from time to time in Pembina's public disclosure documents including, among other things, those detailed under the heading "Risk Factors" in Pembina's management's discussion and analysis for the year ended December 31, 2009, which can be found at www.sedar.com.
Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected. Such forward-looking statements are expressly qualified by the above statements and are made as of the date of this news release. Pembina does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. Management of Pembina approved the financial outlook contained herein. Readers should be aware the information contained in the financial outlook contained herein may not be appropriate for other purposes.
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