New York and Calgary, February 27, 2004 KeySpan Corporation (NYSE:KSE) and
KeySpan Facilities Income Fund (TSX:KEY.UN) (the Fund) announced today that the Fund
has entered into an agreement to sell 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 will be used
to acquire a 35.91% interest in the business of KeySpan Energy Canada Partnership
(KeySpan Canada) from KeySpan Corporation. KeySpan Corporation will receive net
proceeds of approximately CDN$186.3 million, after commissions and expenses. This offer is
subject to normal regulatory approvals and is expected to close on or about April 1, 2004.
After closing, the Fund’s ownership in KeySpan Canada will increase from 39.1% to 75%.
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
