Keyera Announces CDN$200 Million Note Issue under Private Shelf Agreement

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.

Investors and Media
Keyera Corp.
John Cobb, Vice-President, Investor Relations, or
Julie Puddell, Manager, Investor Relations
Email: [email protected]; Telephone: [phone] / Toll Free: 888.699.4853