Veresen Inc.
TSX : VSN

Veresen Inc.

September 06, 2016 16:02 ET

Veresen Announces Closing of $650 Million of New Credit Facilities Within Veresen Midstream to Fully Fund Contracted Capital Projects Under Construction

CALGARY, ALBERTA--(Marketwired - Sept. 6, 2016) - Veresen Inc. ("Veresen") (TSX:VSN) today announced that Veresen Midstream has secured $650 million of new credit facilities which will be primarily used to fund Veresen Midstream's contracted capital projects under construction, including the Sunrise, Tower and Saturn processing facilities.

Veresen Midstream's $650 million of new credit facilities is comprised of:

  • New US$150 million Senior Secured Term Loan B, in addition to the existing US$575 million Term Loan B
  • Increase of $405 million in the Expansion Facility, which will now provide up to $1,680 million in borrowing capacity
  • Incremental $50 million of capacity within the Revolving Facility for a limit of up to $125 million

"Veresen Midstream's ability to secure additional borrowing capacity is an important step to delivering on its growth profile and reflects confidence in both the resource base as well as the relationship Veresen Midstream has with the Cutbank Ridge Partnership," said Don Althoff, President and CEO of Veresen. "With the addition of these credit facilities within Veresen Midstream, and our previously announced intention to divest of our power business, Veresen is now positioned to deliver $1.4 billion in contracted capital projects without the need to further access the capital markets."

Standard & Poor's Ratings Services and Moody's Investors Service have reaffirmed Veresen Midstream's credit ratings at BB- (stable) and Ba3 (stable), respectively. Veresen Midstream intends to maintain target leverage of 55% to 60%. Debt at the partnership level is non-recourse to Veresen.

Veresen Midstream is a jointly-owned limited partnership between Veresen and Kohlberg Kravis Roberts & Co. L.P. Veresen currently has an approximate 48% joint-control interest in Veresen Midstream, with the opportunity to increase its interest to 50% in the future.

About Veresen Inc.

Veresen is a publicly-traded dividend paying corporation based in Calgary, Alberta that owns and operates energy infrastructure assets across North America. Veresen is engaged in three principal businesses: a pipeline transportation business comprised of interests in the Alliance Pipeline, the Ruby Pipeline and the Alberta Ethane Gathering System; a midstream business which includes a partnership interest in Veresen Midstream Limited Partnership which assets owns in western Canada, and an ownership interest in Aux Sable, which owns a world-class natural gas liquids (NGL) extraction facility near Chicago, and other natural gas and NGL processing energy infrastructure; and a power business comprised of a portfolio of assets in Canada. Veresen is also developing Jordan Cove LNG, a six million tonne per annum natural gas liquefaction facility proposed to be constructed in Coos Bay, Oregon, and the associated Pacific Connector Gas Pipeline. In the normal course of business, Veresen regularly evaluates and pursues acquisition and development opportunities.

Veresen's Common Shares, Cumulative Redeemable Preferred Shares, Series A, Cumulative Redeemable Preferred Shares, Series C, and Cumulative Redeemable Preferred Shares, Series E trade on the Toronto Stock Exchange under the symbols "VSN", "VSN.PR.A", "VSN.PR.C" and "VSN.PR.E", respectively. For further information, please visit www.vereseninc.com.

Forward-Looking Information

Certain information contained herein relating to, but not limited to, Veresen and its businesses, constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that Veresen expects or anticipates may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "will", "may", "estimate", "anticipate", "believe", "expect", "potential", "plan", "intend", "target", "project", "forecast" or similar words suggesting future outcomes or outlook. Forward-looking statements in this news release include, but are not limited to, statements with respect to sources of funding for Veresen's capital projects and the target leverage levels of Veresen Midstream. The forward-looking information included herein involves significant risks, uncertainties and other factors. Such risks, uncertainties and other factors include, but are not limited to, risks relating to our ability to maintain Veresen Midstream's target leverage levels. Additional information on risks, uncertainties and factors that could affect the foregoing forward-looking information and/or Veresen's operations or financial results is included in its filings with the securities commissions or similar authorities in each of the provinces of Canada, as may be updated from time to time. Readers are also cautioned that such additional information is not exhaustive.

The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these factors are independent and management's future course of action would depend on its assessment of all information at that time. Although Veresen believes that the expectations conveyed by the forward-looking information are reasonable based on information available on the date of preparation, no assurances can be given as to future results, levels of activity and achievements. Undue reliance should not be placed on the information contained herein, as actual results achieved will vary from the information provided herein and the variations may be material. Veresen makes no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof, and Veresen does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement.

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