Keyera Announces $200 Million Private Placement Debt Financing

CALGARY, April 25, 2012 /CNW/ - Keyera Corp. (TSX: KEY) (TSX: KEY.DB.A) ("Keyera") announced today that it is entering into a private placement of 7-year and 12-year senior unsecured notes (the "Notes") in the principal amount of approximately Canadian $200 million, to a group of institutional investors in Canada and the U.S. The transaction is expected to close on June 19, 2012, subject to satisfying closing conditions.

The Notes will be issued in four tranches: $3 million denominated in U.S. dollars bearing interest at 3.42% and maturing on June 19, 2019; $52 million denominated in Canadian dollars bearing interest at 4.35% maturing on June 19, 2019; $128 million denominated in U.S. dollars bearing interest at 4.19% and maturing on June 19, 2024; and $17 million denominated in Canadian dollars bearing interest at 4.91% maturing on June 19, 2024. Interest is payable semi-annually on June 19 and December 19. Concurrent with this transaction, Keyera has entered into an agreement with a syndicate of Canadian banks to swap the U.S. dollar proceeds from the 12-year Notes into Canadian dollars. The resulting effective average interest rate for the total principal amount of the 12-year Notes is 5.14%.

"This transaction will enhance Keyera's capital structure by providing long-term financing at attractive rates", said Dean Setoguchi, Vice President and CFO. "Net proceeds will be used to reduce short-term bank debt and support capital expenditures associated with our long-term growth strategy".

About Keyera
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 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 debt placement 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: satisfactory completion of the private placement agreement and closing conditions for the debt placement; 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; 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.

For further information about Keyera, please visit our website at www.keyera.com or contact:

John Cobb, Director, Investor Relations or Heidi Christensen Brown, Senior Advisor, Investor Relations
E-mail: [email protected], Telephone: [phone] / Toll Free: [phone], Facsimile: [phone].