/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
SERVICES/
CALGARY, May 20, 2014 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera" or the
"Company") announced today that it has entered into a financing
agreement with a syndicate of underwriters under which Keyera will
issue 3.75 million common shares ("Common Shares") on a "bought deal"
basis at an issue price of $73.75 per Common Share for total gross
proceeds of approximately $276.6 million. The net proceeds of the
offering will be used to partially fund the Company's capital growth
program, to reduce short term indebtedness of the Company under its
credit facilities and for general corporate purposes.
The syndicate of underwriters is co-led by RBC Capital Markets and
National Bank Financial Inc. and includes TD Securities Inc., CIBC, BMO
Capital Markets, Scotiabank, Peters & Co. Limited, FirstEnergy Capital
Corporation, GMP Securities L.P. and Macquarie Capital Markets Canada.
Keyera has granted the underwriters an over-allotment option,
exercisable in whole or in part at any time up to 30 days following the
closing of the offering, to purchase up to an additional 562,500 Common
Shares at an issue price of $73.75 per Common Share.
The Common Shares will be issued pursuant to a prospectus supplement
that will be filed with securities regulatory authorities in Canada
under Keyera's short form base shelf prospectus dated August 19, 2013.
Closing of the offering is subject to normal regulatory approvals and
is anticipated to occur on May 29, 2014.
Recent Developments
Keyera is currently pursuing its most ambitious capital growth program
in its corporate history and anticipates spending between $600 million
and $700 million on these projects this year. In addition to its
previously announced capital growth projects, Keyera announced this
morning that it has officially reached an agreement with Enbridge
Pipelines (Athabasca) Inc. ("Enbridge") to participate as a 30%
non-operating owner in the Norlite Pipeline. The Norlite Pipeline is
the proposed large diameter diluent transportation pipeline that will
deliver condensate from the Fort Saskatchewan area to the Athabasca oil
sands region in northeast Alberta. It is anchored by throughput
commitments from Suncor Energy Inc., Total E&P Canada Limited and Teck
Resources Limited for the Fort Hills oil sands project and by Suncor
Energy Oil Sands Limited Partnership for its proprietary oil sands
production. Enbridge anticipates finalizing the project scope later
this year, at which time the estimated capital cost will be determined.
Keyera also recently completed its $113 million acquisition of a number
of facility and reserves assets in the West Pembina area of Alberta,
including an 85% interest in the Cynthia gas plant. A third party has
served notice that it intends to exercise its right of first refusal
("ROFR") on certain reserves. The reserves that are subject to the ROFR
are valued at $23.6 million, which amount is being held in escrow. This
third party is also claiming that it has a right of first refusal on
the Cynthia gas plant. Keyera does not believe that the acquisition of
its interest in the Cynthia gas plant triggered a ROFR on the facility
and a hearing has been scheduled for late May for a determination of
this issue.
About Keyera
Keyera Corp. (TSX:KEY) 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 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 Keyera
management's current expectations and assumptions relating to Keyera's
business, the environment in which it operates, anticipated timing and
closing of the offering and the future operations and performance of
Keyera's assets. As these forward-looking statements depend upon future
events, actual outcomes may differ materially depending on factors such
as: confirmation of satisfaction of TSX and other securities regulatory
requirements; the exercise of the ROFR on the reserves associated with
the Cynthia gas plant; the interpretation of the rights of first
refusal under the agreements governing the Cynthia gas plant and
certain reserves; a potential determination that there are valid third
party claims to any of the acquired assets; Keyera's ability and right
to operate the acquired assets; changes in production decline rates;
turnaround scheduling and costs at the Cynthia gas plant; environmental
liabilities; the design, construction and operation of the Norlite
Pipeline; producer development plans and oil sands activity levels; the
ability of Enbridge to secure all necessary approvals and consents for
the proposed Norlite Pipeline and all associated facilities; the
ability of Enbridge to secure appropriate rights-of-way for the
proposed Norlite Pipeline; producer willingness to contract for
services to support an increased scope for the Norlite Pipeline;
construction and input costs; construction scheduling variables;
availability of construction crews and engineering services; ability to
source required parts and equipment; future operating results of the
assets; future operating results of Keyera's 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; access to third
party facilities; overall economic and market conditions; access to
capital and financing alternatives; operational risks associated with
Keyera's businesses and operations; 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.
For additional information on these and other factors, see Keyera's
public filings on www.sedar.com. Unless otherwise required by applicable laws, Keyera does not intend
to publicly update or revise forward-looking statements, whether as a
result of new information, future events or otherwise.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of securities in any state in the United States in which such
offer, solicitation or sale would be unlawful. The securities referred
to herein have not been and will not be registered under the United
States Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an applicable
exemption from registration requirements.
SOURCE Keyera Corp.
