Keyera becomes Newest energy Company to tap markets

Keyera Corp. is selling $429.4-million in shares to repay debt and fund development, the most recent infrastructure business to tap markets as crude prices edge up.

Calgary-based Keyera Corp., famous for processing petroleum and natural gas, said late Thursday it is selling 12.2 million shares on a bought deal basis at $35.20 per cent to banks led by RBC Capital Markets and National Bank Financial Inc..

The share sale is the latest by a significant pipeline or infrastructure player, signalling renewed interest in energy prices in a section of the business that sustained the least damage through the fall in oil rates. However, companies have racked up debt at a set of big acquisitions.

This week, Enbridge Inc. issued $1.5-billion (Canadian) in stocks and said it would sell $3-billion in funds in 2018 as the firm seeks to streamline operations after its $37-billion merger last year with rival Spectra Energy Corp..

That followed a $300-million offering by Pembina Pipeline Corp., announced on Tuesday. Pembina this year purchased Veresen Inc. for $9.7-billion, including the target’s debt.

Keyera stocks closed up 1.65 percent Thursday on the Toronto Stock Exchange at $36.36. The company said profits would help finance $800-million to $900-million in spending next year.

Courtesy: The Globe And Mail

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