New York and Calgary, May 26, 2003 KeySpan Corporation and KeySpan Facilities
Income Fund (“the Fund”) announced today that a final prospectus has been filed with the
securities regulatory authorities throughout Canada for the sale of units of the Fund. The
Fund has been created to acquire a 34.49% interest in the business of KeySpan Energy
Canada Partnership (“KeySpan Canada”) from KeySpan Corporation.
The Fund will issue 15,000,000 units at a price of $10.00 per unit for total gross proceeds of
CDN$150,000,000. The units are expected to provide a cash-on-cash yield of 10.9%
annually paid through monthly distributions. The first monthly distribution is expected to be
paid on July 15.
The Fund has granted the underwriters an option to purchase up to an additional 2,000,000
units at the offering price for a period of 30 days following the closing to cover overallotments,
if any, and for market stabilization purposes. KeySpan Corporation will retain a
65.51% ownership interest in KeySpan Canada unless the over-allotment option is
exercised. If the over-allotment option is exercised in full, KeySpan Corporation will receive
additional gross proceeds of CDN$20,000,000 and will then own 60.9% of KeySpan
Canada.
The Toronto Stock Exchange has conditionally approved the listing of the Fund units subject
to the fulfillment of customary conditions. At the close of the offering, which is expected on
or about May 30, 2003, the Fund’s units will trade on The Toronto Stock Exchange under
the symbol KEY.UN.
About KeySpan Facilities Income Fund
Each Unit of the Fund will represent 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 both 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 (NYSE: KSE) is the
largest distributor of natural gas in the Northeast with 2.5 million customers, operating
regulated natural gas utilities in New York, Massachusetts and New Hampshire under the
KeySpan Energy Delivery service company. This customer focused business is
complemented by the Energy Services business which offers a portfolio of energy-related
products, services and solutions to homes and businesses under the KeySpan Home Energy
Services and KeySpan Business Solutions companies.
KeySpan is also the largest investor owned electric generator in New York State. We own
approximately 6,400 Mw of generating capacity, which provides power to 1.1 million LIPA
customers on Long Island and supplies 25% of New York City’s capacity needs. In addition
to these assets, KeySpan has strategic investments in natural gas exploration, production,
pipeline transportation, distribution and storage, and Canadian gas processing.
KeySpan has headquarters in Brooklyn, Boston and Long Island and 12,000 employees. For
more detailed financial and strategic information, please visit our Investor Relations web
page 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 was made in Canada only pursuant to a prospectus.
This press release contains statements about the estimated yield and distributions on the
trust units, the estimated closing date and listing of the trust units and other future events
which constitute forward-looking statements. Forward-looking statements involve 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 final 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
