Keyera Corp. Announces Consent Solicitation
Keyera Corp. (TSX: KEY), a Canadian energy infrastructure leader, is currently embarking on a significant financial initiative involving its outstanding hybrid notes. The company is engaging in a solicitation process to gather consent from its noteholders concerning certain proposed amendments to its existing debt structure.
The Purpose Behind the Consent Solicitation
The primary goal of this Consent Solicitation is to obtain approval from the holders of Keyera's hybrid notes for several respective amendments in their indentures. If these amendments receive the green light from the noteholders, it will allow for the exchange of all existing principal amounts of both the Series 2019 and Series 2021 notes for new notes with equivalent economic terms. Notably, these new notes will exclude specific conditions that currently require automatic conversion into preferred shares under certain triggering events.
Benefits of the Proposed Amendments
The proposed changes aim to standardize the terms of Keyera's 2019 and 2021 hybrid notes, ensuring consistency with their recently issued hybrid notes. This alignment will position all outstanding hybrid securities uniformly, which is crucial for credit rating evaluations. Morningstar DBRS is anticipated to regard the newly issued notes at par with Keyera's other hybrid securities following these amendments.
Overview of the Consent Process
For the amendments to be validated, the written consent of at least two-thirds of the aggregate outstanding principal from each series of notes is required. The deadline for noteholders to submit their consents is set for the end of October. However, it is important to note that this deadline could be subject to extensions or alterations by Keyera.
Details in the Consent Solicitation Statement
The comprehensive details regarding the Consent Solicitation, outlining the necessary procedures for noteholders, have been outlined in the Consent Solicitation Statement released by the company. It is highly advisable for interested noteholders to thoroughly review this document, which contains important information about the planned changes and the implications of approving them.
Keyera's Strategic Flexibility
Keyera reserves the right to periodically examine and adjust the terms of the Consent Solicitation based on their internal considerations. This strategic flexibility allows them to adapt to market conditions and respond to stakeholder feedback effectively.
Engagement with Solicitation Agents
In executing this process, Keyera has partnered with RBC Dominion Securities Inc., serving as the Solicitation Agent, while Computershare Investor Services Inc. takes on the role of Tabulation Agent. Noteholders can direct any inquiries regarding the Consent Solicitation Statement to the Solicitation Agent.
About Keyera Corp.
Keyera Corp. is well-established in the Canadian energy sector, functioning as an integrated energy infrastructure company. Its operations are diverse, comprising natural gas gathering and processing as well as various related services, all aimed at providing high-quality energy solutions. Keyera's extensive network and expertise allow it to effectively serve customers throughout the energy landscape.
Frequently Asked Questions
1. What is the Consent Solicitation by Keyera Corp.?
The Consent Solicitation is a process where Keyera seeks approval from its noteholders for amendments to its existing hybrid notes.
2. Why are the amendments necessary?
The amendments aim to align the terms of the 2019 and 2021 notes with Keyera's latest hybrid notes for consistency and improved credit ratings.
3. What is the deadline for submitting consent?
The deadline for noteholders to submit their consents is at 5:00 p.m. Toronto time on October 31, 2025.
4. Who are the key contacts for this process?
RBC Dominion Securities Inc. acts as the Solicitation Agent. Interested individuals can reach them by phone or email for inquiries.
5. How does this affect Keyera's overall strategy?
This Consent Solicitation is part of Keyera's broader strategy to enhance its financial stability and ensure uniformity across its hybrid securities.
