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.