CALGARY, April 14 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN;
KEY.DB; KEY.DB.A) ("Keyera") announced today that it has priced a private
placement of long term senior unsecured notes (the "Notes") in the principal
amount of approximately Canadian $97 million, to a group of institutional
investors in Canada and the U.S. The Notes have an effective interest rate of
8.06% and mature on May 1, 2016. The transaction is expected to close on April
30, 2009. The net proceeds from the Notes will be used to repay Canadian $90
million of existing long term debt when they mature on October 1, 2009.
The Notes include $35 million denominated in Canadian dollars bearing
interest at 7.87% and $50 million denominated in U.S. dollars bearing interest
at 8.40%. Concurrent with this transaction, Keyera has entered into an
agreement with a syndicate of Canadian banks to swap the U.S. dollar proceeds
and future interest payments into Canadian dollars. The resulting effective
interest rate for the total principal amount is 8.06%. Interest is payable
semi-annually on May 31 and November 30.
"We are pleased to have successfully refinanced the portion of our long
term debt that matures later this year", said Dean Setoguchi, Vice President
and CFO. "Our ability to complete this transaction at favourable rates, given
the current economic situation, is a testament to the strength of Keyera's
business model and conservative approach to our financial management".
Advisory
This document contains forward-looking statements that involve known and
unknown risks and uncertainties, many of which are beyond Keyera's control.
The forward-looking statements are based on management's current expectations
and assumptions relating to Keyera's business and the environment in which it
operates. As the results or events predicted or implied in these
forward-looking statements depend upon future events, actual results or events
may differ materially from those predicted. Some of the factors which could
cause actual results or events to differ materially include the ability of
Keyera to successfully implement strategic initiatives, whether such
initiatives yield the expected benefits, operating and other costs, future
operating results and the components of those results, fluctuations in the
demand for natural gas, NGLs, crude oil and bitumen, changes in commodity
prices, the activities of producers, competitors and others, the weather,
overall economic conditions, proposed or actual legislative changes, including
any further announcements by the federal government with respect to the tax
treatment of income trusts 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
Keyera.
For additional information on these and other factors, see Keyera's
public filings on www.sedar.com. 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.
