Keyera Corp. (TSX:KEY) ("Keyera") announced today that it is entering into a private placement of 10-year senior unsecured notes (the "Notes") totaling CAD$400 million with a group of institutional investors in Canada and the United States. The Notes will bear interest at 3.68% and mature on September 20, 2027. RBC Capital Markets, LLC acted as lead placement agent on the offering and Citigroup Global Markets Inc. acted as co-placement agent.
The transaction provides Keyera with long-term financing at attractive rates. Proceeds from the Notes will be used to repay short-term debt incurred to execute Keyera's capital program and for general corporate purposes. Subject to satisfying closing conditions, the transaction is expected to close on September 20, 2017 with the proceeds drawn on the same date. Interest will be paid semi-annually.
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.
SOURCE: Keyera Corp.
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