New York and Calgary, April 1, 2004 KeySpan Corporation (NYSE:KSE) and KeySpan Facilities Income Fund (TSX:KEY.UN) (the “Fund') announced today the successful completion of the public offering of 15.617 million units of the Fund at a price of $12.60 per unit for gross total proceeds of CDN$196.8 million. The proceeds of the offering were used to acquire a 35.91% interest in the business of KeySpan Energy Canada Partnership (“KeySpan Canada”) from KeySpan Corporation, increasing the Fund’s ownership in KeySpan Canada from 39.1% to 75%.
KeySpan Corporation will receive net proceeds of approximately CDN$186.3 million, after commissions and expenses.
The Fund pays cash distributions to unitholders monthly and the first distribution on the new units is expected to be paid on May 17 to unitholders of record on April 30.
About KeySpan Facilities Income Fund
Each unit of the 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 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 Canada's NGL infrastructure consists of pipelines, processing and storage in Edmonton and Fort Saskatchewan, Alberta, a major North American NGL hub.
About KeySpan Corporation
A member of the Standard & Poor’s 500 Index, KeySpan Corporation is the largest distributor of natural gas in the Northeast U.S. with 2.5 million customers, operating regulated natural gas utilities in New York, Massachusetts and New Hampshire under the KeySpan Energy Delivery service company. KeySpan Corporation is also the largest investor owned electric generator in New York State, with approximately 6,400 Mw of generating capacity providing power to 1.1 million Long Island Power Authority customers on Long Island and supplying 25% of New York City’s capacity needs. KeySpan Corporation also has strategic investments in natural gas exploration, production, pipeline transportation, distribution and storage.
KeySpan Corporation has headquarters in Brooklyn, Boston and Long Island and 12,000 employees. More information is available at http://investor.keyspanenergy.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 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) 205-7673 Toll Free: (888) 699-4853 Facsimile: (403) 205-8303
