Calgary, November 16, 2004 KeySpan Facilities Income Fund (TSX:KEY.UN; KEY.DB) (the “Fund”) announced today that the Fund has entered into an agreement to sell, on a bought deal basis, 10.872 million units of the Fund at a price of $13.90 per unit for gross total proceeds of approximately CDN$ 151 million. The proceeds of the offering will be used by the Fund to acquire KeySpan Corporation’s remaining interest in the KeySpan Energy Canada Partnership (“KeySpan Canada”). This offer is subject to normal regulatory approvals and is expected to close on or about December 2, 2004. After closing, the Fund will indirectly own 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 is made through a syndicate of underwriters led by RBC Capital Markets and Scotia Capital. RBC Capital Markets is acting as sole bookrunner in connection with the issue.
“We are excited to be entering a new phase, as a 100% publicly-owned energy business, based in Canada,” said Jim Bertram, KeySpan Canada President and CEO. “Over the past six years we have enjoyed a very positive and successful association with KeySpan Corporation, and we are happy that Bob Catell and Neil Nichols have agreed to continue as directors of KeySpan Canada. Their experience in the North American energy sector and detailed knowledge of our business will continue to be valuable.”
“This transaction is the final step in the complete monetization of our ownership interest in KeySpan Canada, once again demonstrating our commitment to monetize our non-core assets and focus on growing our core businesses,” said Robert B. Catell, Chairman and CEO of KeySpan Corporation. “KeySpan Canada has been an excellent investment for KeySpan under the strong Canadian management team.”
About KeySpan Facilities Income Fund
Each unit of KeySpan Facilities Income Fund represents an indirect ownership interest in the business of KeySpan Energy 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. For further information about KeySpan Facilities Income Fund, please visit our website at www.keyspancanada.com.
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 is 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 preliminary prospectus filed with the securities regulatory authorities throughout Canada.
For further information, please contact:
David G. Smith Senior Vice President and Chief Financial Officer – KeySpan Facilities Income Fund, E-mail: David_Smith@keyspancanada.com Telephone (403) 205-7604 Toll Free: (888) 699-4853 Facsimile: (403) 205-8303
John Cobb Director, Investor Relations – KeySpan Facilities Income Fund, E-mail: John_Cobb@keyspancanada.com Telephone (403) 205-7673 Toll Free: (888) 699-4853 Facsimile: (403) 205-8303
