Keyera Corp. (TSX:KEY) ("Keyera") announced today that it has
entered into a financing agreement with a syndicate of underwriters co-led by
RBC Capital Markets and National Bank Financial Inc. under which Keyera will
issue 12,200,000 common shares ("Common Shares") on a
"bought deal" basis at an issue price of $35.20 per Common Share for total
gross proceeds of approximately $429.4 million. The offering is in support
of Keyera's growth capital program. A portion of the net proceeds will
initially be used to reduce short term indebtedness under Keyera's credit
facilities, with the balance to be used to fund capital projects and for
general corporate purposes. With the announcement earlier today of additional
investments at its Simonette gas plant which are supported by two long-term gas
handling agreements, Keyera now expects to spend between $800 million and $900
million on growth projects in 2018.
Keyera has granted the underwriters an over-allotment option, exercisable in
whole or in part at any time up to 30 days following the closing of the
offering, to purchase up to an additional 1,830,000 Common Shares at an issue
price of $35.20 per Common Share.
The Common Shares will be issued pursuant to a prospectus supplement that
will be filed with securities regulatory authorities in Canada under Keyera's
short form base shelf prospectus dated September 8, 2017 and may also be
offered by way of private placement in the United States. Closing of the
offering is subject to normal regulatory approvals and is anticipated to occur
on December 8, 2017.
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 processing, transportation, storage, 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.
Advisory Regarding Forward-Looking Statements
This news release contains forward-looking statements pertaining
to Keyera's business and its future operations, including the
proposed capital projects and expenditures. As these forward-looking
statements depend upon future events, actual outcomes may differ materially
depending on factors such as: the accuracy of construction schedules and
cost estimates; future operating results of the
assets; the ability of Keyera to
execute its strategic initiatives in connection with
the capital projects; availability and cost of engineering resources,
construction crews and materials; timely receipt of all necessary regulatory
approvals or changes in requirements; activities of producers, competitors,
customers, business partners and others; overall economic conditions; access to
capital and financing alternatives; potential delays or changes in development
plans; the legislative, regulatory and tax environment; and other known or
unknown factors. This news release also contains forward-looking
statements pertaining to the proposed offering of Common Shares, the timing of
closing of the offering and the amount and use of proceeds from the
offering. For example, the closing of the offering may not occur or may be
delayed if the conditions to closing are not satisfied or if the timeline to
satisfy the conditions is extended. Accordingly, there is risk that the offering
will not be completed within the anticipated time, on the terms proposed, or at
all. Further, there is no guarantee as to when the proceeds from the
offering will be used and it is possible the use of proceeds could be changed
should Keyera's board of directors determine that it would be in the best
interests of Keyera. 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 as of the date
hereof, and except as required by applicable securities law, Keyera undertakes
no obligation to update publicly or revise such documents, whether as a result
of new information, future events, or otherwise.
This press release is not an offer of the Common Shares for sale in the
United States. The Common Shares may not be offered or sold in the United
States absent registration or exemption from registration. The Common Shares
will not be publicly offered in the United States. The Common Shares have not
and will not be registered under the U.S. Securities Laws, or any state
securities laws.
For further information about Keyera, please visit our website at www.keyera.com.
Keyera Corp.
Lavonne Zdunich
Director, Investor Relations
403.205.7670 or Toll Free: 888.699.4853
Keyera Corp.
Nick Kuzyk
Manager, Investor Relations
403.205.7670 or Toll Free: 888.699.4853
ir@keyera.com
www.keyera.com