CALGARY, ALBERTA–(Marketwired – Nov. 30, 2017) – 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.