Keyera Corp.
TSX : KEY
TSX : KEY.DB.A

February 21, 2012 16:26 ET

Keyera Corp. Announces $176.3 million Public Offering of Common Shares

CALGARY, ALBERTA--(Marketwire - Feb. 21, 2012) -

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

Keyera Corp. (TSX:KEY)(TSX:KEY.DB.A) ("Keyera") announced today that it has entered into a financing agreement with a syndicate of underwriters under which Keyera will issue 4.1 million common shares ("Common Shares") on a "bought deal" basis at an issue price of $43.00 per Common Share for gross total proceeds of approximately $176.3 million. Net proceeds from the offering will be used for the repayment of indebtedness incurred to fund capital projects, including the acquisition of Alberta EnviroFuels, and other general business purposes.

The syndicate of underwriters is co-led by RBC Capital Markets and National Bank Financial Inc. and includes TD Securities Inc., Scotiabank, BMO Capital Markets, CIBC World Markets Inc., Peters & Co. Limited., and Macquarie Capital Markets Canada Ltd. 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 615,000 Common Shares at an issue price of $43.00 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 June 17, 2011. Closing of the offering is subject to normal regulatory approvals and is anticipated to occur on March 1, 2012.

About Keyera

Keyera Corp. (TSX:KEY)(TSX:KEY.DB.A) 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), the production of iso-octane and crude oil midstream activities.

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

Disclaimer

This document contains forward-looking statements based on Keyera management's current expectations and assumptions relating to Keyera's business, the environment in which it operates, anticipated timing and closing of the offering and the future operations and performance of Keyera's assets. As these forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: confirmation of satisfaction of TSX and other securities regulatory requirements; future operating results of Keyera's assets; future operating results of Keyera's business segments and the components of those results; Keyera's ability to execute its strategic initiatives; commodity supply/demand balances and prices; activities of producers, competitors, customers, business partners and others; access to third party facilities; overall economic and market conditions; access to capital and financing alternatives; operational risks associated with Keyera's businesses; potential delays or changes in plans with respect to development projects or capital expenditures or the results therefrom; the legislative, regulatory and tax environment; 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, please visit our website at www.keyera.com.

Contact Information

  • Keyera Corp.
    John Cobb
    Director, Investor Relations
    (403) 205-7670 / Toll Free: (888) 699-4853
    (403) 205-8425 (FAX)

    Keyera Corp.
    Heidi Christensen Brown
    Senior Advisor, Investor Relations
    (403) 205-7670 / Toll Free: (888) 699-4853
    (403) 205-8425 (FAX)
    ir@keyera.com