"I am very pleased to add these strategic assets to our energy infrastructure portfolio" said Mick Dilger, Pembina’s President and Chief Executive Officer. "Expanding our footprint into the prolific Bakken play and connecting it to the Alberta petrochemical market in a low-risk transaction is a logical step for us, and one that is in line with our integrated strategy. We expect that future opportunities associated with both Vantage and SEEP will provide further diversification and growth for our asset base, which will ultimately translate into continued long-term value for our shareholders."
Pursuant to the Transaction, Pembina has acquired all of the equity interests of Vantage Pipeline Canada ULC, Vantage Pipeline US LP and Mistral and repaid Vantage’s bank indebtedness of approximately US$224 million in a transaction valued at approximately US$650 million. Pembina paid cash of US$395 million and US$255 million in its common shares to fund the Transaction. The Company funded the cash portion of the consideration in part with proceeds from its previously announced bought-deal preferred share issuance, which closed on September 11, 2014, as well as existing credit capacity. The US$255 million common share portion of the consideration resulted in 5.61 million shares being issued to the Seller. In addition, given the Transaction’s effective date of August 1, 2014, Pembina will reimburse the Seller for approximately US$23 million that was spent to advance the construction of SEEP between the effective date and the closing date of the Transaction. Pembina is also pleased to announce that it has reached an agreement to acquire the remaining 10 percent interest in SEEP, which is anticipated to close shortly after the Transaction, after which time Pembina will own 100 percent of the 60 mmcf/d deep cut processing facility.
