New York and Calgary, May 5, 2003 KeySpan Corporation and KeySpan
Facilities Income Fund (“the Fund”) announced today that the Fund has filed a
preliminary prospectus with the securities regulatory authorities in each of the
provinces of Canada in connection with a proposed initial public offering of units
of the Fund. The Fund has been created to acquire an interest in the business of
KeySpan Energy Canada Partnership (“KeySpan Canada”) from KeySpan
Corporation. When issued, units of the Fund will trade on the Toronto Stock
Exchange.
The Fund anticipates making monthly distributions of Distributable Cash Flow
from KeySpan Canada to the Fund Unitholders. A copy of the preliminary
prospectus can be viewed on SEDAR (http://www.sedar.com).
"We believe our business is well suited to an income trust due to its long life
strategic asset base, stable cash flows, experienced management team, diverse
revenue and customer base and existing long term contracts," says KeySpan
Canada’s President and CEO Jim Bertram. “This offering will provide for greater
access to capital and a structure to take advantage of industry consolidation.”
"This offering is consistent with our strategy of monetizing our non-core assets
and focusing on growing our core businesses in the Northeast U.S. and
strengthening our balance sheet," says KeySpan Corporation Chairman & CEO
Robert B. Catell.
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 (NGL).
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 pipelineconnected
and offer a wide range of flexible services. KeySpan Canada's NGL
infrastructure is also well positioned, processing feed-stock and transporting it to
a major North American NGL hub in Edmonton and Fort Saskatchewan, Alberta
for further processing, storage and ultimately marketing to customers in Canada
and the United States.
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.
For further information contact:
David G. Smith, Senior Vice President and Chief Financial Officer
KeySpan Canada
(403) 205-7604
or
John Cobb, Director, Investor Relations
KeySpan Canada
(403) 205 - 7673
