Steel Reef Infrastructure Corp.



March 17, 2014 14:29 ET

Steel Reef Closes Private Placement

CALGARY, ALBERTA--(Marketwired - March 17, 2014) - Steel Reef Infrastructure Corp. ("Steel Reef") is pleased to announce to industry that it has completed its second private placement pursuant to which 48,150,000 common shares were subscribed for at a price of $1.35 per share for gross proceeds of up to $65 million. Of these shares, 24,075,000 were issued today for gross proceeds of $32.5 million. The remaining 24,075,000 shares are issuable upon Steel Reef exercising its right to call the subscribers' unfunded commitment to purchase the shares during the next 12 months. The private placement, which targeted minimum gross proceeds of $45 million, was significantly over-subscribed. Proceeds from the private placement are expected to be used to target midstream investment opportunities, focused on the acquisition or construction of field gathering systems, processing facilities and other infrastructure opportunities in the Western Canadian Sedimentary Basin.

FirstEnergy Capital Corp. and Peters & Co. Limited, served as co-lead agents for the syndicate which included Dundee Securities Ltd., GMP Securities L.P. and National Bank Financial Inc.

About Steel Reef Infrastructure Corp.:

Steel Reef is a midstream company focused on strategically partnering with oil and gas exploration, development and production companies to develop a portfolio of midstream assets, through acquisition or construction, with a view to generating a regular dividend for its investors.

Forward-Looking Information

Certain statements made in this release are forward-looking in nature, including statements concerning the total gross proceeds of the offering and use of proceeds from the offering. The words "may", "could", "should", "would", "expect", "intend", "estimate", "anticipate", "believe", or "outlook" and similar expressions often identify forward-looking information. By their nature, forward-looking statements require Steel Reef to make assumptions and are subject to inherent risks and uncertainties. The forward-looking statements contained in this release are based on certain key expectations and assumptions made by Steel Reef, including with respect to Steel Reef's decision to exercise its right to call the subscribers' unfunded commitment in the future, the ability of subscribers to fund such unfunded commitment and the availability of midstream investment opportunities. Although Steel Reef believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Steel Reef can give no assurance that they will prove to be correct. These forward-looking statements also involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Steel Reef to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. If any such risks actually occur, they could materially and adversely affect Steel Reef's business, financial condition or results of operations. Steel Reef's forward-looking statements are qualified in their entirety by these cautionary statements. In addition, the forward-looking statements are made only as of the date of this release, and except as required by applicable securities law, Steel Reef undertakes no obligation to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise.

Contact Information

  • Steel Reef Infrastructure Corp.
    Scott Southward
    President and Chief Executive Officer
    (403) 263-8333

    Steel Reef Infrastructure Corp.
    Caroline Banks
    Vice-President Finance and Chief Financial Officer
    (403) 263-8333
    www.steelreef.ca