Calgary, September 30, 2004 KeySpan Facilities Income Fund (TSX:KEY.UN; KEY.DB) announced today the closing of a private placement of $90 million of long term senior secured notes, denominated in Canadian dollars, to a group of institutional investors in the U.S. The notes bear interest at 5.23% and mature on October 1, 2009. The notes were issued by KeySpan Energy Facilities Limited, a wholly owned subsidiary of KeySpan Energy Canada Partnership (“KeySpan”). Proceeds of the offering were used to repay KeySpan’s short term bank debt.
“We are very pleased to have successfully completed an offering of this size at attractive long term interest rates,” noted David Smith, Senior Vice President and Chief Financial Officer. “This transaction completes the financing for KeySpan’s acquisition of EnerPro Midstream Company and improves the long-term stability of our distributable cash flow.”
The offering was arranged and placed by RBC Capital Markets (lead arranger), and SPP Capital Partners LLC through a joint venture with National Bank Financial Inc.
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 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'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 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 or contact:
John Cobb, Director, Investor Relations, E-mail: John_Cobb@keyspancanada.com Telephone (403) 205-7670 Toll Free: (888) 699-4853 Facsimile: (403) 205-8303
