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Keyera Corp. is attractive to income-seeking investors because it has a solid track record of increasing its dividend.BECQ - BPI

Keyera Corp. is selling $429.4-million in shares to repay debt and fund growth, the latest infrastructure company to tap markets as crude prices edge up.

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

The share sale is the latest by a major pipeline or infrastructure player, signalling renewed interest in energy deals in a segment of the industry that sustained the least damage through the collapse in oil prices. Still, companies have racked up debt in a series of big acquisitions.

This week, Enbridge Inc. issued $1.5-billion (Canadian) in shares and said it would sell $3-billion in assets in 2018 as the company seeks to streamline operations following 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 bought Veresen Inc. for $9.7-billion, including the target's debt.

Keyera shares closed up 1.65 per cent Thursday on the Toronto Stock Exchange at $36.36. The company said proceeds would help fund $800-million to $900-million in spending next year.

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 08/11/24 10:16am EST.

SymbolName% changeLast
ENB-N
Enbridge Inc
-0.38%42.26
ENB-T
Enbridge Inc
-0.22%58.68
KEY-T
Keyera Corp
-1.21%43.28
PBA-N
Pembina Pipeline Cor
-0.39%41.06
PPL-N
PPL Corp
+1.14%32.71
PPL-T
Pembina Pipeline Corp
-0.21%57.01
SE-N
Sea Ltd ADR
-1.39%94.39

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