CALGARY, Sept. 4, 2013 /CNW/ - Keyera Corp. (TSX:KEY) (TSX: KEY.DB.A)
("Keyera") announced today that it has agreed to issue CDN$200 million
of long-term notes pursuant to an uncommitted private shelf agreement
with the Prudential Capital Group ("Prudential"). Proceeds from the
notes will be used to pay down existing credit facilities and other
general corporate purposes, including Keyera's ongoing capital
expenditure program.
In connection with this debt placement, Keyera and Prudential will be
amending their current uncommitted private shelf agreement, including
amendments providing for the issuance of up to US$350 million of notes
(subject to certain conditions), up from the previous limit of US$200
million.
Keyera expects to close the notes placement on October 10, 2013, subject
to satisfaction of closing conditions. When issued, CDN$100 million of
the notes will have a coupon rate of 4.92%, maturing on October 10,
2025, and CDN$100 million of the notes will have a coupon rate of
5.09%, maturing on October 10, 2028. Interest will be paid
semi-annually in arrears. Upon closing of this placement, there will
be approximately US$67 million of capacity remaining under the amended
shelf facility, taking into account existing long-term senior unsecured
notes previously issued to Prudential which are deducted from the
available capacity.
About Keyera Corp.
Keyera Corp. (TSX:KEY) (TSX:KEY.DB.A) 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),
the production of iso-octane and crude oil midstream activities.
Keyera's gas processing plants and associated facilities are
strategically located in the west central, foothills and deep basin
natural gas production areas of the Western Canada Sedimentary Basin.
Its NGL and crude oil infrastructure, including pipelines, terminals
and processing and storage facilities, as well as its iso-octane
facility, are primarily located in Edmonton and Fort Saskatchewan,
Alberta, a major North American NGL hub. Keyera markets propane,
butane, condensate and iso-octane to customers in Canada and the United
States.
Disclaimer
This document contains forward-looking statements based on management's
current expectations and assumptions relating to Keyera's business, its
financing strategy, the environment in which it operates, anticipated
timing and construction of capital projects and the future operations
and performance of the assets. As these forward-looking statements
depend upon future events, actual outcomes may differ materially
depending on factors such as: satisfaction of the closing conditions
for the CDN $200 million notes placement; approval and execution of the
amending agreement to the uncommitted shelf facility; future operating
results of the assets; future operating results of Keyera's business
segments and the components of those results; Keyera's ability to
execute its strategic initiatives; commodity supply/demand balances and
prices; activities of producers, competitors, customers, business
partners and others; overall economic conditions; access to capital and
financing alternatives; operational risks in developing and producing
natural gas; potential delays or changes in plans with respect to
development projects or capital expenditures or the results therefrom;
the legislative, regulatory and tax environment; and other known or
unknown factors. There can be no assurance that the results or
developments anticipated by Keyera will be realized or that they will
have the expected consequences for or effects on Keyera.
Additional Information
For additional information on these and other risk factors, see Keyera's
public filings on www.sedar.com. The information provided in this release is given as of the date
hereof.
SOURCE: Keyera Corp.
