By Devika Patel
Knoxville, Tenn., Nov. 24 - Keyera Facilities Income Fund said it will sell C$80 million of its 8.25% convertible unsecured subordinated debentures on a bought-deal basis through an underwriting syndicate.
The debentures will have a face value of C$1,000 and mature Dec. 31, 2013. They are convertible into trust units at a conversion price of C$19.50 per trust unit, which represents a ratio of 51.2821.
The syndicate of underwriters is led by RBC Capital Markets, and includes National Bank Financial Inc., TD Securities Inc., Scotia Capital Inc., CIBC World Markets Inc., BMO Nesbitt Burns Inc., Clarus Securities Inc., FirstEnergy Capital Corp. and Peters & Co. Ltd.
The underwriters have a greenshoe for an additional $12 million in debentures.
Proceeds will be used to fund acquisitions and growth capital projects, to reduce indebtedness under Keyera's bank credit facilities and for general business purposes.
The unincorporated open-ended trust is based in Calgary, Alta.
| Issuer: | Keyera Facilities Income Fund
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | C$80 million
|
| Greenshoe: | C$12 million
|
| Maturity: | Dec. 31, 2013
|
| Coupon: | 8.25%
|
| Price: | Par of C$1,000
|
| Yield: | 8.25%
|
| Conversion price: | C$19.50
|
| Conversion ratio: | 51.2821
|
| Warrants: | No
|
| Underwriters: | RBC Capital Markets (lead), National Bank Financial Inc., TD Securities Inc., Scotia Capital Inc., CIBC World Markets Inc., BMO Nesbitt Burns Inc., Clarus Securities Inc., FirstEnergy Capital Corp. and Peters & Co. Ltd.
|
| Pricing date: | Nov. 24
|
| Stock symbol: | Toronto: KEY.UN
|
| Stock price: | $17.87 at close Nov. 24
|
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