Keyera Announces Long-Term Private Placement Debt Financing

CALGARY, Sept. 20, 2013 /CNW/ - Keyera Corp. (TSX:KEY) (TSX:KEY.DB.A) ("Keyera") announced today that it is entering into a private placement of 12-year and 15-year senior unsecured notes (the "Notes") totaling approximately CAD$305 million with a group of institutional investors in Canada and the U.S. Approximately CAD$230 million of the proceeds is expected to be drawn in November 2013, with the remaining CAD$75 million being drawn in April 2014, all subject to satisfying closing conditions.

The Notes will be issued in four tranches:

• $20 million denominated in Canadian dollars bearing interest at 5.05% and maturing on November 20, 2025;
• $140 million denominated in U.S. dollars bearing interest at 4.75% and maturing on November 20, 2025;
• $65 million denominated in U.S. dollars bearing interest at 4.95% maturing on November 20, 2028; and
• $75 million denominated in Canadian dollars bearing interest at 5.34% and maturing on April 8, 2029.

Interest is payable semi-annually. Concurrent with this transaction, Keyera has entered into an agreement with a syndicate of Canadian banks to swap the U.S. dollar principal and interest portions of the 12-year and 15-year Notes into Canadian dollars. The resulting effective weighted average Canadian interest cost for the CAD$305 million of Notes is 5.31%.

"This transaction provides long-term financing for Keyera as we undertake our extensive growth capital program", said Steven Kroeker, Vice President and CFO. "The financing maturity dates fit nicely with the long-term nature of our business and the attractive rates provide interest rate certainty going forward".

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 each of the CAD$230 million and CAD$75 million notes placements; 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