KeySpan Facilities Completes Offering and Financing

KeySpan Facilities Income Fund completed its initial public offering on May 30, 2003. The fund raised $170 million for an investment in KeySpan Energy Canada Partnership. KeySpan Energy operates one of the largest natural gas midstream businesses in Canada, consisting of both natural gas gathering and processing, as well as the processing, transportation, storage and marketing of natural gas liquids (NGLs).

The underwriting syndicate was led by RBC Capital Markets Inc., and included CIBC World Markets Inc., National Bank Financial Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., TD Securities Inc. and Peters & Co. Limited.

Concurrently, KeySpan Energy established credit facilities in the amounts of $100 million and US$50 million through a syndicate, which was led by Royal Bank of Canada and included National Bank of Canada, Alberta Treasury Branches, The Bank of Nova Scotia, CIBC and TD Bank.

The fund and KeySpan Energy were represented by Macleod Dixon LLP, with a team that included Chrysten Perry, Dan Baxter, Jim McKee, Harold Jacques, Neville Jugnauth, Kent Kufeldt and KayLynn Litton. KeySpan Corporation was represented by in-house counsel Al Bereche, and by Beth Webb, Rebecca Wright and Bill Kingery, Jr., of Dickstein Shapiro Morin & Oshinsky LLP in Washington, D.C.

The underwriters were represented by Fraser Milner Casgrain LLP, with a team that included David Spencer, Craig Story, Roch Martin, John Reynolds, Bill Jenkins, Mike Hurst, Kelli Grier and Toby Allan.

For the bank transaction, Wayne Fedun and Michael Wylie of Macleod Dixon represented KeySpan Energy, and Bill Jenkins and Jason Barabash of Fraser Milner Casgrain represented the banking syndicate. Chris Barry, Kimberly Anderson and Chris Doerksen of Dorsey & Whitney LLP in Seattle provided U.S. securities law advice on the transaction.