Pembina Pipeline Closes C$600M Senior Notes Offering - Analyst Blog
Canadian energy transportation and service provider Pembina Pipeline Corporation PBA has closed the C$600 million senior notes offering announced on Jun 11. The unsecured medium-term notes offering took place in two parts.
The first offering, worth C$500 million, carries an interest rate of 4.24%. These series 6 notes are due to mature on Jun 15, 2027. The second part of the offering – C$100 million – has an interest rate of 4.75% and is part of the company’s series 3 notes. These notes are due to mature on Apr 30, 2043.
Pembina Pipeline added that the proceeds from this offering would be used to lower short-term debt under its revolving credit facility. Also, the funds would be used to finance the company’s capital programs and for other general corporate purposes.
Based in Calgary, Pembina Pipeline is a leading transportation and midstream services company. The firm holds a diversified asset base with a fee-for-service business model. This allows it to better withstand the commodity price weakness than most of its peers.
The company had reported strong numbers on the earnings front as well. First quarter 2015 earnings of 26 cents comfortably surpassed the Zacks Consensus Estimate of 23 cents. Pembina Pipeline’s consistent dividend growth as well as payment also reflects its strong financial position.
Currently, Pembina Pipeline sports a Zacks Rank #1 (Strong Buy).
Other players worth considering from the same sector include EQT Midstream Partners, LP EQM, Holly Energy Partners L.P HEP and Tallgrass Energy Partners, LP TEP. These stocks also carry the same rank as Pembina Pipeline.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PEMBINA PIPELN (PBA): Free Stock Analysis Report
EQT MIDSTRM PTR (EQM): Free Stock Analysis Report
HOLLY EGY PTNRS (HEP): Free Stock Analysis Report
TALLGRASS ENRGY (TEP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
