By Marisa Wong
Madison, Wis., April 25 - Keyera Corp. announced a private placement of seven-year and 12-year senior notes. Proceeds will total about C$200 million.
The notes will be issued to a group of institutional investors in Canada and the United States in four tranches as follows:
• $3 million of 3.42% notes due June 19, 2019;
• C$52 million of 4.35% notes due June 19, 2019;
• $128 million of 4.19% notes due June 19, 2024; and
• C$17 million of 4.91% notes due June 19, 2024.
Concurrently, Keyera entered into an agreement with a syndicate of Canadian banks to swap the U.S. dollar proceeds from the 12-year notes into Canadian dollars. The resulting effective average interest rate for the total principal amount of the 12-year notes is 5.14%.
"This transaction will enhance Keyera's capital structure by providing long-term financing at attractive rates," Dean Setoguchi, vice president and chief financial officer, said in a press release.
"Net proceeds will be used to reduce short-term bank debt and support capital expenditures associated with our long-term growth strategy."
The transaction is expected to close on June 19.
The natural gas company is based in Calgary, Alta.
| Issuer: | Keyera Corp.
|
| Issue: | Senior notes
|
| Amount: | C$200 million (approximate)
|
| Announcement date: | April 25
|
| Settlement date: | June 19
|
| Distribution: | Private placement
|
|
|
| 3.42% notes
|
| Amount: | $3 million
|
| Maturity: | June 19, 2019
|
| Coupon: | 3.42%
|
|
|
| 4.35% notes
|
| Amount: | C$52 million
|
| Maturity: | June 19, 2019
|
| Coupon: | 4.35%
|
|
|
| 4.19% notes
|
| Amount: | $128 million
|
| Maturity: | June 19, 2024
|
| Coupon: | 4.19%
|
|
|
| 4.91% notes
|
| Amount: | C$17 million
|
| Maturity: | June 19, 2024
|
| Coupon: | 4.91%
|
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