Calgary, December 2, 2004 KeySpan Facilities Income Fund (TSX:KEY.UN; KEY.DB) (the “Fund”) announced today the successful completion of the public offering of 10,872,333 units of the Fund at a price of $13.90 per unit. Gross total proceeds were approximately CDN$151 million. The proceeds of the offering were used by the Fund to acquire KeySpan Corporation’s remaining interest in KeySpan Energy Canada Partnership (“KeySpan Canada”). With the closing of this transaction, the Fund now owns 100% of KeySpan Canada.
The Fund pays cash distributions to unitholders monthly and the first distribution on the new units is expected to be paid on January 14, 2005 to unitholders of record on December 31, 2004.
The issue was made through a syndicate of underwriters led by RBC Capital Markets and Scotia Capital. RBC Capital Markets was acting as sole bookrunner in connection with the issue.
About KeySpan Facilities Income Fund
Each unit of KeySpan Facilities Income Fund represents an indirect ownership interest in the business of KeySpan Canada. KeySpan Canada 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). KeySpan Canada's gas processing plants and associated facilities are strategically located in the west central and foothills natural gas production areas of the Western Canadian Sedimentary Basin. Its NGL infrastructure includes pipelines, terminals and processing and storage facilities in Edmonton and Fort Saskatchewan, Alberta, a major North American NGL hub. KeySpan Canada markets propane, butane and condensate to customers in Canada and the United States.
The trust units offered have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable states securities laws. The offer was made in Canada only pursuant to a prospectus.
This press release contains certain forward-looking statements that involve significant known and unknown risks, uncertainties and other factors that could cause actual results, performance, achievements or industry results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include, among others, those discussed in more detail under the heading “Risk Factors” in the prospectus filed with the securities regulatory authorities throughout Canada.
For further information about KeySpan Facilities Income Fund, please visit our website at www.keyspancanada.com or contact:
David G. Smith, Senior Vice President and Chief Financial Officer, E-mail: David_Smith@keyspancanada.com Telephone (403) 205-7604 Toll Free: (888) 699-4853 Facsimile: (403) 205-8303
John Cobb, Director, Investor Relations, E-mail: John_Cobb@keyspancanada.com Telephone (403) 205-7670 Toll Free: (888) 699-4853 Facsimile: (403) 205-8303
