News Release

Pembina Arranges $200 Million Private Placement Debt Financing


CALGARY, Apr 18, 2006 (Canada NewsWire via COMTEX News Network) -- Pembina Pipeline Corporation, a wholly-owned subsidiary of Pembina Pipeline Income Fund, announced today that it has entered into an agreement with a group of institutional investors in the United States and Canada providing for the issuance by way of private placement of C$200 million of Senior Notes, Series C. The Series C Notes will mature September 30, 2021 and will bear interest at a fixed rate of 5.58%.

Closing of the offering is anticipated to occur on or about September 30, 2006 and the net proceeds from the offering will be used to repay existing bank debt and for general corporate purposes. Capital expenditures totaling an estimated $400 million are forecast over the next two years when major development projects such as the Cheecham Lateral, presently under construction, and the planned Horizon Pipeline are completed. These new facilities will, once in service, contribute attractive, long-term and fully contracted returns that will significantly enhance the stability and sustainability of cash distributions of the Pembina Pipeline Income Fund.

Peter Robertson, Pembina's Vice President Finance and CFO commented, "In view of the significant capital spending program Pembina will undertake in the coming years, we considered it prudent to lock-in the current attractive rates in advance of those expenditures, minimizing future financing risk associated with potential increases in interest rates."

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Series C Notes in any jurisdiction. The Series C Notes have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

Pembina Pipeline Income Fund (TSX: PIF.UN, PIF.DB.A, PIF.DB.B) is among the leading issuers in the Canadian energy infrastructure trust sector. Pembina's extensive network of conventional liquids feeder pipelines, and growing presence in the oil sands and midstream sectors, provide an integral service to the Western Canadian energy industry. This balanced portfolio of premium, long-life energy infrastructure assets supports the stability and sustainability of the Fund. Information on the Pembina Pipeline Income Fund is available on the Company's website at


Certain statements in this press release may constitute "forward-looking information" which involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Pembina to be materially different from any future results, performance or achievements expressed or implied by such statements. When used in this press release, such statements use such words as "will" and "anticipate" and other similar terminology. These statements reflect Pembina's current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, including, but not limited to, the factors discussed below. Although the forward-looking information contained in this press release is based upon what management of Pembina believes are reasonable assumptions, Pembina cannot provide assurance that actual results will be consistent with this forward-looking information. This forward-looking information is given as of the date of this press release, and, subject to applicable securities laws, Pembina assumes no obligation to update or revise such information to reflect new events or circumstances.

In particular, this press release contains forward looking information pertaining to the anticipated closing of the offering of Series C Notes and the expected use of proceeds of the offering of Series C Notes. Actual results could differ materially from those anticipated in such forward looking information as a result of the following risk factors: the inability of Pembina to satisfy conditions to closing the offering of Series C Notes, the inability of purchasers to complete the purchase of Series C Notes; and any changes in Pembina's capital requirements at the time of closing the offering of Series C Notes or restrictions that impact the ability of Pembina to repay bank debt at the time of closing. These risks and uncertainties are in addition to other risks and uncertainties which may impact Pembina's business as disclosed more fully in Pembina Pipeline Income Fund's renewal annual information form dated March 23, 2005 and available under the Fund's profile at and all of the forward-looking information contained in this press release is qualified by these additional risk factors.

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SOURCE: Pembina Pipeline Income Fund

contact: D. James Watkinson, Vice President, General Counsel and Secretary, Pembina Pipeline Corporation, (403) 231-7500, 1-888-428-3222; e-mail: [email protected]; To request a free copy of this organization's annual report, please go to and click on Tools for Investors.