CALGARY, ALBERTA–(Marketwired – May 16, 2016) – 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 8.25 million common shares (“Common Shares”) on a “bought deal” basis at an issue price of $36.35 per Common Share for total gross proceeds of approximately $300 million. The net proceeds of the offering will initially be used to reduce Keyera’s short term indebtedness under its credit facilities.
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 1,237,500 Common Shares at an issue price of $36.35 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 9, 2015 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 May 24, 2016.
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.