CALGARY, ALBERTA–(Marketwired – Nov. 7, 2016) – Veresen Inc. (“Veresen”) (TSX:VSN) announced today that it has agreed to issue $350 million senior unsecured medium term notes, Series 5 (the “Notes”). The Notes will have a fixed coupon rate of 3.43% per annum, payable semi-annually, and will mature on November 10, 2021.
Veresen intends to use the net proceeds from the sale of the Notes to reduce outstanding indebtedness under its revolving credit facility and for general corporate purposes. The company expects to repay all of the outstanding $300 million 3.95% senior unsecured medium term notes, Series 2, due March 14, 2017 upon maturity using its revolving credit facility.
The Notes have been rated BBB (Stable) by Standard & Poor’s Rating Services and BBB (Under Review with Negative Implications) by DBRS Limited.
The Notes are being offered through a syndicate of investment dealers co-led by CIBC Capital Markets and Scotia Capital Inc. under Veresen’s short form base shelf prospectus dated October 14, 2015, a prospectus supplement dated November 7, 2016 relating to the offering by Veresen from time to time of up to $2 billion aggregate principal amount of senior unsecured medium term notes and a pricing supplement dated November 7, 2016 relating to the offering of the Notes. The offering of the Notes is expected to close on or about November 10, 2016, subject to customary closing conditions.
This news release does not constitute an offer to sell or the solicitation of an offer to buy the Notes in any jurisdiction in which such an offer, solicitation or sale would be unlawful. The Notes have not been approved or disapproved by any regulatory authority. The Notes have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any securities laws of any state of the United States and may not be offered, sold or delivered in the United States or to, or for the account or benefit of, United States persons unless an exemption from the registration requirements of the U.S. Securities Act is available.
About Veresen Inc.
Veresen is a publicly-traded dividend paying corporation based in Calgary, Alberta that owns and operates energy infrastructure assets across North America. Veresen is engaged in three principal businesses: a pipeline transportation business comprised of interests in the Alliance Pipeline, the Ruby Pipeline and the Alberta Ethane Gathering System; a midstream business which includes a partnership interest in Veresen Midstream Limited Partnership which assets owns in western Canada, and an ownership interest in Aux Sable, which owns a world-class natural gas liquids (NGL) extraction facility near Chicago, and other natural gas and NGL processing energy infrastructure; and a power business comprised of a portfolio of assets in Canada. Veresen is also developing Jordan Cove LNG, a six million tonne per annum natural gas liquefaction facility proposed to be constructed in Coos Bay, Oregon, and the associated Pacific Connector Gas Pipeline. In the normal course of business, Veresen regularly evaluates and pursues acquisition and development opportunities.
Veresen’s Common Shares, Cumulative Redeemable Preferred Shares, Series A, Cumulative Redeemable Preferred Shares, Series C, and Cumulative Redeemable Preferred Shares, Series E trade on the Toronto Stock Exchange under the symbols “VSN”, “VSN.PR.A”, “VSN.PR.C” and “VSN.PR.E”, respectively. For further information, please visit www.vereseninc.com.