Keyera to enter long-term private placement debt financing

Keyera Corp. (TSX:KEY) will enter into a private placement of 10-year and 12-year senior unsecured notes totaling CAD$300 million with a group of institutional investors in Canada and the United States. The notes will be issued in two tranches with CAD$200 million bearing interest at 3.96% and maturing on October 13, 2026 and CAD$100 million bearing interest at 4.11% and maturing on October 13, 2028. Citigroup Global Markets Inc. acted as lead placement agent on the offering and RBC Capital Markets LLC acted a co-placement agent.

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 October 13, 2016 with the proceeds drawn on the same date. Interest will be paid semi-annually.

Keyera Corp. operates one of the largest midstream energy companies in Canada, providing 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 fractionation, transportation, storage and marketing, iso-octane production and sales, and a condensate system in the Edmonton/Fort Saskatchewan area of Alberta.

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