Keyera Facilities Income Fund Announces Adoption of a Premium Distribution(TM) and Distribution Reinvestment Plan



    CALGARY, May 4 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB;
KEY.DB.A) announced today that it has adopted a Premium Distribution(TM) and
Distribution Reinvestment Plan (Plan). Eligible unitholders may elect to
participate in the Plan, commencing with the May distribution, payable to
unitholders on June 15, 2009.
    Keyera has not yet set the record date for the May distribution. At
present it expects that the record date will be in the last week of May and
will make an announcement later this week once the date has been determined.
Eligible unitholders are encouraged to contact the institution through which
they hold their Units as soon as the record date is announced to confirm
enrolment procedures and timelines.
    The Plan allows eligible unitholders of Keyera to direct that their cash
distributions be reinvested in additional units issued from treasury at a 5%
discount to the Average Market Price (as defined in the Plan) on the
applicable distribution payment date. The Plan further allows eligible
unitholders to elect, under the Premium Distribution(TM) component of the
Plan, to have these additional units delivered to the designated Plan Broker
in exchange for a premium cash payment equal to 102% of the regular, declared
cash distribution that is reinvested on their behalf under the Plan. Canaccord
Capital Corporation will act as the Plan Broker for the Premium
Distribution(TM) component of the Plan.
    The Plan supersedes, amends and restates in its entirety Keyera's current
distribution reinvestment and optional unit purchase plan, which allowed
eligible unitholders to reinvest their cash distributions in additional units
at a 3% discount to the average market price as defined in that plan. Other
differences between the Plan and the previous plan are the addition of the
Premium Distribution(TM) component under the Plan and the discontinuation of
the optional unit purchase component which was available under the previous
plan.
    Eligible unitholders who wish to participate in either the distribution
reinvestment component or the Premium Distribution(TM) component of the Plan
must provide enrolment instructions to the broker, investment dealer,
financial institution or other nominee through which they hold their units,
and should consult such nominee regarding the deadline for doing so. Enrolment
instructions will be collected and aggregated within the brokerage system and
ultimately communicated to Computershare Trust Company of Canada, as Plan
Agent. Accordingly, eligible unitholders wishing to participate in the Plan
for the May 2009 distribution must provide enrolment instructions sufficiently
in advance of the record date to allow the broker, investment dealer,
financial institution or other nominee holding their units to meet the
deadline, and in any event by such time as the broker, investment dealer,
financial institution or other nominee may require.
    Eligibility to participate in the Plan depends upon certain unitholder
residency criteria: residents of Canada are eligible to participate in either
the distribution reinvestment component or the Premium Distribution(TM)
component of the Plan; residents of the United States are not currently
eligible to participate in either component of the Plan; and residents of
foreign jurisdictions other than the United States may participate in the
distribution reinvestment component of the Plan if the laws of that foreign
jurisdiction permit such participation without imposing any additional legal
or regulatory requirements on the Plan or Keyera.
    A complete copy of the Plan and a related series of Questions and Answers
are available on Keyera's website at www.keyera.com under the heading
"Unitholder Information - DRIP". Unitholders should carefully read the
complete text of the Plan before making any decisions regarding their
participation in the Plan.
    Keyera reserves the right to limit the amount of new equity available
under the Plan on any particular distribution date. Accordingly, participation
may be prorated in certain circumstances. In the event of proration, or if for
any other reason a cash distribution cannot be reinvested under the Plan, in
whole or in part, a participating unitholder will receive from Keyera the
regular, declared cash distribution on any units enrolled in the Plan for
which the distribution is payable but which cannot be reinvested in accordance
with such unitholder's election.
    No commissions, service charges or brokerage fees will be payable under
either component of the Plan in connection with the purchase of units from
Keyera. Unitholders should, however, consult the broker, investment dealer,
financial institution or other nominee who holds their units to confirm
whether such nominee charges any fees to enrol in the Plan on their behalf.
    Participation in the Plan does not relieve unitholders of any liability
for taxes that may be payable in respect of distributions that are reinvested
in new units under the Plan. Unitholders should consult their own tax advisors
concerning the tax implications of their participation in the Plan having
regard to their particular circumstances.

    Advisory

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction. Keyera's units
have not been and will not be registered under the United States Securities
Act of 1933, as amended, or any state securities laws, and may not be offered
or sold in the United States or to any U.S. person absent registration or an
applicable exemption from the registration requirements of such laws.

    This document contains forward-looking statements that involve known and
unknown risks and uncertainties, many of which are beyond Keyera's control.
The forward-looking statements are based on management's current expectations
and assumptions relating to Keyera's business, its distribution policy and the
environment in which it operates. As the results or events predicted or
implied in these forward-looking statements depend upon future events, actual
results or events may differ materially from those predicted. Some of the
factors which could cause actual results or events to differ materially
include: the voting results of the special resolution dealing with record
dates being considered by the unitholders at the Fund's Annual and Special
Meeting; policies, procedures and deadlines adopted by CDS, brokers,
investment dealers, financial institutions or other nominees; regulatory
matters; proposed or actual legislative changes; overall economic conditions;
changes in capital, debt or credit markets; the ability of Keyera to
successfully implement strategic initiatives; whether such initiatives yield
the expected benefits; future operating results and the components of those
results; fluctuations in the demand for and prices of natural gas, NGLs, crude
oil and bitumen; the activities of producers, competitors and others;
potential construction delays or cost overruns; 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.
    The forward-looking statements contained in this news release are made as
of the date hereof, and, except to the extent required by applicable
securities laws and regulations, Keyera assumes no obligation to update or
revise forward-looking statements made herein or otherwise, whether as a
result of new information, future events, or otherwise. The forward-looking
statements contained in this document are expressly qualified by this
cautionary note.

    %SEDAR: 00019203E




For further information:

For further information: about Keyera Facilities Income Fund, please
visit our website at www.keyera.com or contact: John Cobb, Director, Investor
Relations; or Bradley White, Investor Relations Advisor, E-mail:
ir@keyera.com, Telephone: (403) 205-7670, Toll Free: (888) 699-5853,
Facsimile: (403) 205-8840


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