Keyera Announces Note Issue under Private Shelf Agreement

CALGARY, Dec. 13 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB; KEY.DB.A) ("Keyera") announced today that it has agreed to issue CDN $70 million of notes pursuant to an uncommitted private shelf agreement. Proceeds from the notes will be used to fund the acquisition of the Simonette area midstream assets announced on November 10, 2010. Closing of the acquisition is expected on December 14, 2010.

The uncommitted private shelf agreement is with Prudential Capital Group and allows for the issuance of up to US$125 million of notes. The closing of the notes placement is scheduled for January 4, 2011, subject to normal closing conditions. When issued, the notes will have a coupon rate of 5.005% and mature on January 4, 2019. Interest will be paid semi-annually in arrears. Keyera will use its existing bank credit facility to fund the Simonette acquisition until proceeds from the note issue are received.

About Keyera Facilities Income Fund

Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB; 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) and crude oil midstream activities.

Keyera's gas processing plants and associated facilities are strategically located in the west central and foothills natural gas production areas of the Western Canada Sedimentary Basin. Its NGL and crude oil infrastructure includes pipelines, terminals and processing and storage facilities in Edmonton and Fort Saskatchewan, Alberta, a major North American NGL hub. Keyera markets propane, butane and condensate 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, 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: satisfaction of the closing conditions for the CDN $70 million notes placement; satisfaction of the conditions for closing the Simonette acquisition; 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; 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. As Keyera does not yet own some of the assets to be acquired, information regarding such assets contained herein has been derived by necessity from information provided by the vendors and other third parties.

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