Keyera Announces CDN$200 Million Note Issue under Private Shelf Agreement
CALGARY, Sept. 4, 2013 /CNW/ - Keyera Corp. (TSX:KEY) (TSX: KEY.DB.A)
("Keyera") announced today that it has agreed to issue CDN$200 million of
long-term notes pursuant to an uncommitted private shelf agreement with the
Prudential Capital Group ("Prudential"). Proceeds from the notes will be
used to pay down existing credit facilities and other general corporate
purposes, including Keyera's ongoing capital expenditure program.
In connection with this debt placement, Keyera and Prudential will be amending
their current uncommitted private shelf agreement, including amendments
providing for the issuance of up to US$350 million of notes (subject to
certain conditions), up from the previous limit of US$200 million.
Keyera expects to close the notes placement on October 10, 2013, subject to
satisfaction of closing conditions. When issued, CDN$100 million of the
notes will have a coupon rate of 4.92%, maturing on October 10, 2025, and
CDN$100 million of the notes will have a coupon rate of 5.09%, maturing on
October 10, 2028. Interest will be paid semi-annually in arrears. Upon
closing of this placement, there will be approximately US$67 million of
capacity remaining under the amended shelf facility, taking into account
existing long-term senior unsecured notes previously issued to Prudential
which are deducted from the available capacity.
About Keyera Corp.
Keyera Corp. (TSX:KEY) (TSX:KEY.DB.A) operates one of the largest natural gas
midstream businesses in Canada. Its business consists of natural gas
gathering and processing as well as the processing, transportation, storage
and marketing of Natural Gas Liquids (NGLs), the production of iso-octane and
crude oil midstream activities.
Keyera's gas processing plants and associated facilities are strategically
located in the west central, foothills and deep basin natural gas production
areas of the Western Canada Sedimentary Basin. Its NGL and crude oil
infrastructure, including pipelines, terminals and processing and storage
facilities, as well as its iso-octane facility, are primarily located in
Edmonton and Fort Saskatchewan, Alberta, a major North American NGL hub.
Keyera markets propane, butane, condensate and iso-octane to customers in
Canada and the United States.
This document contains forward-looking statements based on management's
current expectations and assumptions relating to Keyera's business, its
financing strategy, the environment in which it operates, anticipated timing
and construction of capital projects and the future operations and performance
of the assets. As these forward-looking statements depend upon future
events, actual outcomes may differ materially depending on factors such as:
satisfaction of the closing conditions for the CDN $200 million notes
placement; approval and execution of the amending agreement to the uncommitted
shelf facility; future operating results of the assets; future operating
results of Keyera's business segments and the components of those results;
Keyera's ability to execute its strategic initiatives; commodity supply/demand
balances and prices; activities of producers, competitors, customers, business
partners and others; overall economic conditions; access to capital and
financing alternatives; operational risks in developing and producing natural
gas; potential delays or changes in plans with respect to development projects
or capital expenditures or the results therefrom; the legislative, regulatory
and tax environment; and other known or unknown factors. There can be no
assurance that the results or developments anticipated by Keyera will be
realized or that they will have the expected consequences for or effects on
For additional information on these and other risk factors, see Keyera's
public filings on www.sedar.com. The information provided in this release is
given as of the date hereof.
SOURCE Keyera Corp.
Investors and Media Keyera Corp. John Cobb, Vice-President, Investor
Relations, or Julie Puddell, Manager, Investor Relations
Email:firstname.lastname@example.org; Telephone: 403.205.7670 / Toll Free: 888.699.4853
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CO: Keyera Corp.
NI: OIL FIN
-0- Sep/04/2013 21:45 GMT
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