Pembina Pipeline Announces Series 7 Preferred Share Conversion and Dividend Rate Reset

Pembina Pipeline Corporation (“Pembina” or the “Company”) (TSX: PPL; NYSE: PBA) announced it will not exercise its right to redeem the outstanding Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 7 (“Series 7 Shares”) (TSX: PPL.PR.G) on December 1, 2024.

As a result, holders of Series 7 Shares may choose to convert some or all of their shares into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 8 (“Series 8 Shares”) on December 1, 2024. Holders who do not opt for conversion will retain their Series 7 Shares.

Per the terms of the Series 7 Shares, if fewer than 1,000,000 Series 7 Shares remain outstanding post-conversion, all remaining shares will automatically convert to Series 8 Shares. Conversely, if fewer than 1,000,000 Series 8 Shares would be outstanding, no conversion will take place. Currently, there are 10,000,000 Series 7 Shares issued.

Series 7 Shares not converted will continue to receive quarterly fixed cumulative preferential cash dividends at an annual rate of 5.953% for the next five years, based on the Government of Canada bond yield of 3.013% plus 2.94%. Series 8 Shares, if issued, will earn quarterly floating rate cumulative dividends, starting at 6.583% for the initial three-month period, tied to the 90-day Government of Canada treasury bill rate plus 2.94%. This rate will reset quarterly.

Shareholders wishing to convert must notify their broker or intermediary during the conversion period from November 1 to November 18, 2024, by 3:00 pm (MT) / 5:00 pm (ET). Timely action is recommended to ensure the process is completed before the deadline. Late notices will not be accepted.

The previously declared dividend of $0.273750 per Series 7 Share, payable on December 1, 2024, to shareholders of record on November 1, will be disbursed on December 2, 2024, since December 1 is not a business day. Further details are available in the September 4, 2014, prospectus supplement on SEDAR+ at www.sedarplus.ca.

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