Keyera Announces $155 Million Private Placement Debt Financing

CALGARY, June 24 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB; KEY.DB.A) ("Keyera") announced today that it has entered into a private placement of medium and long-term senior unsecured notes (the "Notes") in the principal amount of approximately Canadian $155 million, to a group of institutional investors in Canada and the U.S. The transaction is expected to close on September 8, 2010, subject to satisfying closing conditions.

The Notes were issued in four tranches: $103 million denominated in U.S. dollars bearing interest at 5.14% and maturing on September 8, 2020; $2 million denominated in Canadian dollars bearing interest at 5.68% maturing on September 8, 2020; $15 million denominated in U.S. dollars bearing interest at 3.91% and maturing on September 8, 2015; and $30 million denominated in Canadian dollars bearing interest at 4.66% maturing on September 8, 2015. Interest is payable semi-annually on September 8 and March 8.

"This additional financing will enhance Keyera's capital structure and support the implementation of our long-term growth strategy", said Dean Setoguchi, Vice President and CFO. "Net proceeds will be used to repay $52.5 million of long term debt maturing in August 2010, reduce short-term bank debt and fund growth capital expenditures and acquisitions".

Disclaimer

This document contains forward-looking statements based on management's current expectations and assumptions relating to Keyera's business, the environment in which it operates, anticipated timing and closing of the acquisitions 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: future operating results of Keyera's business segments and the components of those results; 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; liabilities inherent in oil and natural gas operations; and 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.

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For further information: about Keyera Facilities Income Fund, please visit our website at www.keyera.com or contact: John Cobb, Director, Investor Relations, or Bradley White, Investor Relations Advisor, E-mail: [email protected], Telephone: [phone], Toll Free: [phone], Facsimile: [phone]