Keyera Announces Long-Term Private Placement Debt Financing
CALGARY, July 21, 2016 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera") announced today that it is entering into a private placement of 10-year and 12-year senior unsecured notes (the "Notes") totaling CAD$300 million with a group of institutional investors in Canada and the United States. The Notes will be issued in two tranches with CAD$200 million bearing interest at 3.96% and maturing on October 13, 2026 and CAD$100 million bearing interest at 4.11% and maturing on October 13, 2028. Citigroup Global Markets Inc. acted as lead placement agent on the offering and RBC Capital Markets, LLC acted a co-placement agent.
The transaction provides Keyera with long-term financing at attractive rates. Proceeds from the Notes will be used to repay short-term debt incurred to execute Keyera's capital program and for general corporate purposes. Subject to satisfying closing conditions, the transaction is expected to close on October 13, 2016 with the proceeds drawn on the same date. Interest will be paid semi-annually.
About Keyera
Keyera Corp. (TSX:KEY) operates one of the largest midstream energy companies in Canada, providing essential services to oil and gas producers in the Western Canada Sedimentary Basin. Its predominantly fee-for-service based business consists of natural gas gathering and processing, natural gas liquids fractionation, transportation, storage and marketing, iso-octane production and sales, and an industry-leading condensate system in the Edmonton/Fort Saskatchewan area of Alberta. Keyera strives to provide high quality, value-added services to its customers across North America and is committed to conducting its business ethically, safely and in an environmentally and financially responsible manner.
Forward-Looking Statements
This news release contains forward-looking statements based on Management's current expectations and assumptions relating to Keyera's business, its financing strategy, the placement of the long-term senior unsecured notes, the use of proceeds from the placement of those notes and the timing for closing of the notes placement. Although Keyera believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on then. As the forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: satisfaction of the closing conditions for notes placement; the activities and actions of the counterparties in the placement; overall economic conditions; activity within the capital markets; 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 outcomes.
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.
For further information about Keyera, please visit our website at www.keyera.com or contact Lavonne Zdunich, Director, Investor Relations, or Nick Kuzyk, Manager, Investor Relations, Email: [email protected], Telephone: 403.205.7670 / Toll Free: 888.699.4853
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