Calgary, June 3, 2004 KeySpan Facilities Income Fund (TSX:KEY.UN) (the “Fund”) announced today the successful completion of the public offering of 9,325,000 units of the Fund at a price of $10.75 per unit and $100 million of 6.75% convertible debentures. Gross total proceeds are approximately $200 million with the Fund receiving net proceeds of approximately $190.7 million, after commissions and expenses. The Fund has also granted the underwriters an over-allotment option until June 30, 2004 to purchase up to an additional 15% in the trust unit offering on the same terms and conditions. The proceeds of the offering will be used to fund a portion of the purchase price of the recently announced acquisition of EnerPro Midstream Company. The sale of these securities was completed through a syndicate of underwriters, led by RBC Capital Markets.
The Fund pays cash distributions to unitholders monthly. Concurrent with the announcement of the acquisition, the Fund announced an 8% increase to its distribution to $0.0980 per unit, beginning with the June distribution, payable July 15. The first distribution on the new units is expected to be paid on July 15 to unitholders of record on June 30. The first interest payment on the debentures will be made on December 31, 2004 and will include interest accrued from the closing date.
About KeySpan Facilities Income Fund
Each unit of the Fund represents an indirect ownership interest in the business of KeySpan Energy Canada Partnership (“KeySpan”). 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 13 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 in Alberta. They are pipeline-connected and offer a wide range of flexible services. KeySpan’s NGL infrastructure consists of pipelines, processing and storage in Edmonton and Fort Saskatchewan, Alberta, a major North American NGL hub.
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
