CALGARY, June 3, 2016 /CNW/ - Keyera Corp. (TSX:KEY) ("Keyera") announced today that it has agreed to issue CDN$60 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 repay short-term indebtedness under Keyera's credit facilities and for general corporate purposes.
Keyera expects to close the notes placement on June 16, 2016, subject to satisfaction of closing conditions. When issued, CDN$30 million of the notes will have a coupon rate of 3.50%, maturing on June 16, 2023 and CDN$30 million of the notes will have a coupon rate of 4.15%, maturing on June 16, 2026. Interest will be paid semi-annually in arrears.
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.
This new release contains forward-looking statements pertaining to the issue of long-term notes, the timing of closing of the issuance and the use of proceeds from the issuance. Although Keyera believes the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on them as Keyera cannot give any assurance that such expectations will prove to be correct. The forward-looking statements herein are subject to risks, including risks associated with the capital markets, and those set forth in Keyera's current annual information form and other continuous disclosure documents. The forward-looking statements in this news release are made only as of the date hereof.
SOURCE Keyera Corp.
For further information: 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