Calgary, August 26, 2003 KeySpan Facilities Income Fund (TSX:KEY.UN) announced today
the closing of a private placement of $125 million of long term senior secured notes,
denominated in Canadian dollars, to a group of institutional investors in Canada and the U.S.
The notes have been issued by KeySpan Energy Canada Partnership (“KeySpan”) and its
wholly owned subsidiary, KeySpan Energy Facilities Limited, in three tranches: $20 million of
5.42% senior secured notes due 2008, $52.5 million of 5.79% senior secured notes due 2010,
and $52.5 million of 6.155% senior secured notes due 2013. The weighted average interest
rate is 5.88%, payable monthly. Proceeds of the offering have been used to repay KeySpan’s
short term bank debt.
“This transaction is an important step in KeySpan’s transition, which began with our initial
public offering,” noted David Smith, Senior Vice President and Chief Financial Officer. “We
are very pleased to have successfully completed a cross-border offering of this size at
attractive long term interest rates. We have diversified our sources of capital and, by
structuring the debt in three maturities, in Canadian dollars, we have reduced the future
refinancing risk.”
The offering was arranged and placed by RBC Capital Markets.
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
