Keyera Corp. Announces $276.6 Million Public Offering of Common Shares

Keyera Corp. Announces $276.6 Million Public Offering of Common Shares 
FOR: Keyera Corp. 
MAY 20, 2014 
Keyera Corp. Announces $276.6 Million Public Offering of Common Shares 
CALGARY, ALBERTA--(Marketwired - May 20, 2014) -  
Keyera Corp. (TSX:KEY) ("Keyera" or the "Company")
announced today that it has entered into a financing agreement with a syndicate
of underwriters under which Keyera will issue 3.75 million common shares
("Common Shares") on a "bought deal" basis at an issue
price of $73.75 per Common Share for total gross proceeds of approximately
$276.6 million. The net proceeds of the offering will be used to partially fund
the Company's capital growth program, to reduce short term indebtedness of
the Company under its credit facilities and for general corporate purposes.  
The syndicate of underwriters is co-led by RBC Capital Markets and National
Bank Financial Inc. and includes TD Securities Inc., CIBC, BMO Capital Markets,
Scotiabank, Peters & Co. Limited, FirstEnergy Capital Corporation, GMP
Securities L.P. and Macquarie Capital Markets Canada. Keyera has granted the
underwriters an over-allotment option, exercisable in whole or in part at any
time up to 30 days following the closing of the offering, to purchase up to an
additional 562,500 Common Shares at an issue price of $73.75 per Common Share. 
The Common Shares will be issued pursuant to a prospectus supplement that will
be filed with securities regulatory authorities in Canada under Keyera's
short form base shelf prospectus dated August 19, 2013. Closing of the offering
is subject to normal regulatory approvals and is anticipated to occur on May
29, 2014. 
Recent Developments 
Keyera is currently pursuing its most ambitious capital growth program in its
corporate history and anticipates spending between $600 million and $700
million on these projects this year. In addition to its previously announced
capital growth projects, Keyera announced this morning that it has officially
reached an agreement with Enbridge Pipelines (Athabasca) Inc.
("Enbridge") to participate as a 30% non-operating owner in the
Norlite Pipeline. The Norlite Pipeline is the proposed large diameter diluent
transportation pipeline that will deliver condensate from the Fort Saskatchewan
area to the Athabasca oil sands region in northeast Alberta. It is anchored by
throughput commitments from Suncor Energy Inc., Total E&P Canada Limited
and Teck Resources Limited for the Fort Hills oil sands project and by Suncor
Energy Oil Sands Limited Partnership for its proprietary oil sands production.
Enbridge anticipates finalizing the project scope later this year, at which
time the estimated capital cost will be determined. 
Keyera also recently completed its $113 million acquisition of a number of
facility and reserves assets in the West Pembina area of Alberta, including an
85% interest in the Cynthia gas plant. A third party has served notice that it
intends to exercise its right of first refusal ("ROFR") on certain
reserves. The reserves that are subject to the ROFR are valued at $23.6
million, which amount is being held in escrow. This third party is also
claiming that it has a right of first refusal on the Cynthia gas plant. Keyera
does not believe that the acquisition of its interest in the Cynthia gas plant
triggered a ROFR on the facility and a hearing has been scheduled for late May
for a determination of this issue.  
About Keyera  
Keyera Corp. (TSX:KEY) 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 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 Keyera
management's current expectations and assumptions relating to
Keyera's business, the environment in which it operates, anticipated
timing and closing of the offering and the future operations and performance of
Keyera's assets. As these forward-looking statements depend upon future
events, actual outcomes may differ materially depending on factors such as:
confirmation of satisfaction of TSX and other securities regulatory
requirements; the exercise of the ROFR on the reserves associated with the
Cynthia gas plant; the interpretation of the rights of first refusal under the
agreements governing the Cynthia gas plant and certain reserves; a potential
determination that there are valid third party claims to any of the acquired
assets; Keyera's ability and right to operate the acquired assets; changes
in production decline rates; turnaround scheduling and costs at the Cynthia gas
plant; environmental liabilities; the design, construction and operation of the
Norlite Pipeline; producer development plans and oil sands activity levels; the
ability of Enbridge to secure all necessary approvals and consents for the
proposed Norlite Pipeline and all associated facilities; the ability of
Enbridge to secure appropriate rights-of-way for the proposed Norlite Pipeline;
producer willingness to contract for services to support an increased scope for
the Norlite Pipeline; construction and input costs; construction scheduling
variables; availability of construction crews and engineering services; ability
to source required parts and equipment; future operating results of the assets;
future operating results of Keyera's 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; access to third party facilities;
overall economic and market conditions; access to capital and financing
alternatives; operational risks associated with Keyera's businesses and
operations; 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 factors, see Keyera's public
filings on Unless otherwise required by applicable laws, Keyera
does not intend to publicly update or revise forward-looking statements,
whether as a result of new information, future events or otherwise. 
This press release shall not constitute an offer to sell or the solicitation of
an offer to buy any securities, nor shall there be any sale of securities in
any state in the United States in which such offer, solicitation or sale would
be unlawful. The securities referred to herein have not been and will not be
registered under the United States Securities Act of 1933, as amended, and may
not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements. 
For further information about Keyera, please visit our website at 
Keyera Corp.
John Cobb, Vice President,
Investor Relations and Information Technology
(403) 205-7670 or Toll Free: (888) 699-4853
Keyera Corp.
Julie Puddell
Manager, Investor Relations
(403) 205-7670 or Toll Free: (888) 699-4853 
INDUSTRY:  Energy and Utilities - Equipment, Energy and Utilities - Oil and Gas
, Energy and Utilities - Pipelines 
-0- May/20/2014 20:29 GMT
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