/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Feb. 14, 2012 /CNW/ - Veresen Inc. ("Veresen") (TSX: VSN) announced today it has closed its previously announced
bought deal offering of 8,000,000 Cumulative Redeemable Preferred
Shares, Series A ("Series A Preferred Shares") at a price of $25.00 per share (the "Offering") for aggregate gross proceeds of $200 million. The previously
announced underwriters' option was exercised in full. The Series A
Preferred Shares were offered to the public through a syndicate of
underwriters with Scotiabank and TD Securities Inc. having been
appointed as the bookrunners and including CIBC, RBC Capital Markets,
BMO Capital Markets, National Bank Financial Inc., Canaccord Genuity
Corp. and HSBC Securities (Canada) Inc.
The holders of Series A Preferred Shares will be entitled to receive
fixed cumulative dividends at an annual rate of 4.40%, payable
quarterly for an initial period up to but excluding September 30, 2017,
as and when declared by the Board of Directors of Veresen. The first
quarterly dividend of $0.4117 is scheduled for June 30, 2012. The
dividend rate will reset on September 30, 2017 and every five years
thereafter at a rate equal to the sum of the then five-year Government
of Canada bond yield plus 2.92%. The Series A Preferred Shares are
redeemable by Veresen, at its option, on September 30, 2017 and on
September 30 of every fifth year thereafter.
Holders of Series A Preferred Shares will have the right to convert all
or any part of their shares into Cumulative Redeemable Preferred
Shares, Series B ("Series B Preferred Shares"), subject to certain conditions, on September 30, 2017, and on
September 30 of every fifth year thereafter. The holders of Series B
Preferred Shares will be entitled to receive quarterly floating rate
cumulative dividends, as and when declared by the Board of Directors of
Veresen, at a rate equal to the sum of the then 90-day Government of
Canada treasury bill rate plus 2.92%.
The Series A Preferred Shares have been rated Pfd-3 (High) by DBRS
Limited and P-3 (High) by Standard & Poor's, a division of The McGraw
Hill Companies, Inc. Net proceeds from the Offering will be used to
reduce indebtedness, partially fund capital expenditures and for other
general corporate purposes.
The Series A Preferred Shares are listed on the Toronto Stock Exchange
under the symbol "VSN.PR.A".
About Veresen Inc.
Veresen is a publicly-traded dividend paying corporation based in
Calgary, Alberta, that owns and operates energy infrastructure assets
across North America. Veresen is engaged in three principal businesses:
a pipeline transportation business comprised of interests in two
pipeline systems, the Alliance Pipeline and the Alberta Ethane
Gathering System; a midstream business which includes ownership
interests in a world-class natural gas liquids extraction facility near
Chicago, the Hythe/Steeprock midstream complex, and other natural gas
and NGL processing energy infrastructure; and a power business with
renewable and gas-fired facilities and development projects in Canada
and the United States, and district energy systems in Ontario and
Prince Edward Island. Veresen and each of its pipeline, midstream and
power businesses are also actively developing a number of greenfield
projects. In the normal course of its business, Veresen and each of its
businesses regularly evaluate and pursue acquisition and development
opportunities.
Veresen's common shares, Series A Preferred Shares and 5.75% convertible
unsecured subordinated debentures, Series C due July 31, 2017 are
listed on the Toronto Stock Exchange under the symbols "VSN",
"VSN.PR.A" and VSN.DB.C", respectively. For further information, please
visit www.vereseninc.com.