Keyera Facilities Income Fund
TSX : KEY.UN
TSX : KEY.DB

Keyera Facilities Income Fund

November 24, 2008 17:05 ET

CORRECTION FROM SOURCE: Keyera Announces Public Offering of Convertible Unsecured Subordinated Debentures

CALGARY, ALBERTA--(Marketwire - Nov. 24, 2008) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

A correction from source is issued with respect to the news release that was disseminated for Keyera Facilities Income Fund (TSX:KEY.UN)(TSX:KEY.DB) today, Nov. 24, 2008, at 4:48 PM ET. In paragraph 4, 51.9481 trust units was changed to 51.2821 trust units. The corrected release follows:

Keyera Facilities Income Fund (TSX:KEY.UN)(TSX:KEY.DB) ("Keyera") announced today that it has entered into a financing agreement with a syndicate of underwriters under which Keyera will issue $80 million principal amount of convertible unsecured subordinated debentures ("Convertible Debentures"), on a bought deal basis. Net proceeds from the offering will be used to fund acquisitions and growth capital projects, to reduce indebtedness under Keyera's bank credit facilities and for general business purposes.

Keyera is engaged in an active growth capital and acquisitions program. Recent acquisitions include an additional 10.5% ownership interest in the Keyera Rimbey gas plant. Keyera has also agreed to acquire an additional 40% ownership interest in the Keyera Brazeau River gas plant, 100% of the Nevis gas plant, and associated pipelines and compressor facilities. This transaction is subject to normal closing conditions and is expected to close on December 1, 2008. The cost of these transactions is approximately $151 million.

The syndicate of underwriters is led by RBC Capital Markets, and includes National Bank Financial Inc., TD Securities Inc., Scotia Capital Inc., CIBC World Markets Inc., BMO Nesbitt Burns Inc., Clarus Securities Inc., FirstEnergy Capital Corp., and Peters & Co. Limited. 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 $12 million principal amount of Convertible Debentures.

The Convertible Debentures will have a $1,000 face value per debenture, a coupon of 8.25%, and will be convertible into trust units of Keyera at the option of the holder at a conversion price of $19.50 per trust unit, which represents a ratio of approximately 51.2821 trust units per $1,000 principal amount of Convertible Debentures. The Convertible Debentures will have a maturity date of December 31, 2013 and pay interest semi-annually in arrears on June 30 and December 31 of each year, commencing June 30, 2009.

The Convertible Debentures will be offered publicly in Canada pursuant to a prospectus supplement to the short form base shelf prospectus dated September 3, 2008 and on a private placement basis in the US pursuant to Rule 144A or such other application exemptions. This offer is subject to normal regulatory approvals and is expected to close on or about December 1, 2008.

About Keyera Facilities Income Fund

Keyera Facilities Income Fund (TSX:KEY.UN)(TSX:KEY.DB) operates one of the largest natural gas midstream businesses in Canada. Its business consists of natural gas gathering and processing as well as the processing, transportation, storage and marketing of natural gas liquids (NGLs) and crude oil midstream activities.

Keyera's gas processing plants and associated facilities are strategically located in the west central and foothills natural gas production areas of the Western Canadian Sedimentary Basin. Its NGL and crude oil infrastructure includes pipelines, terminals and processing and storage facilities in Edmonton and Fort Saskatchewan, Alberta, a major North American NGL hub. Keyera markets propane, butane and condensate to customers in Canada and the United States.

Advisory

This document contains forward-looking statements that involve known and unknown risks and uncertainties, many of which are beyond Keyera's control. The forward-looking statements are based on management's current expectations and assumptions relating to Keyera's business and the environment in which it operates. As the results or events predicted or implied in these forward-looking statements depend upon future events, actual results or events may differ materially from those predicted. Some of the factors which could cause actual results or events to differ materially include Keyera's ability to successfully implement planned initiatives, whether those initiatives yield the expected benefits, the impact of government and industry initiatives, operating and other costs, future operating results, fluctuations in the demand for natural gas, NGLs and crude oil, the activities of producers, competitors and others, the weather, overall economic conditions and other known or unknown factors. There can be no assurance that the results or developments anticipated by Keyera will be realized or that they will have the expected consequences for or effects on Keyera. For additional information on these and other factors, see Keyera's public filings on www.sedar.com. Unless otherwise required by applicable laws, Keyera does not intend to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

For further information about Keyera Facilities Income Fund, please visit our website at www.keyera.com.

Contact Information

  • Keyera Facilities Income Fund
    John Cobb
    Director, Investor Relations
    (403) 205-7670 or Toll Free: 1-888-699-4853
    (403) 205-8440 (FAX)
    or
    Keyera Facilities Income Fund
    Bradley White
    Investor Relations Advisor
    (403) 205-7670 or Toll Free: 1-888-699-4853
    (403) 205-8440 (FAX)
    Email: ir@keyera.com
    Website: www.keyera.com