Exhibit 99.2
NEWS
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KeySpan Corporation For Immediate Release
Contacts: Investors Media Relations
George Laskaris Ed Yutkowitz
718.403.2526 718.403.2523
KeySpan Announces Successful Remarketing of Senior Notes Due 2008
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Brooklyn, New York, March 21, 2005 - KeySpan Corporation (NYSE: KSE) announced
today the successful remarketing of $394.88 million aggregate principal amount
of its Senior Notes due May 16, 2008, which formed part of its outstanding 8.75%
MEDS Equity Units. The Senior Notes were remarketed at a price of 101.311% of
the $50 principal amount of the Senior Notes. As a result of the remarketing,
the annual interest rate on the Senior Notes will remain at 4.90%, and the
Senior Notes will no longer form a part of the MEDS Equity Units. Pursuant to
the terms of the MEDS Equity Units and the Senior Notes, the holders of $65.12
million aggregate principal amount of the Senior Notes elected not to
participate in the remarketing and will remain outstanding at the 4.90% reset
rate.
The remarketing is scheduled to close on March 24, 2005. J.P. Morgan Securities
Inc. is the remarketing agent for the transaction. Proceeds of the remarketed
Senior Notes will be used to purchase a portfolio of U.S. Treasury securities
that will be pledged to secure the MEDS Equity Units' obligations under the
stock purchase contract component of the MEDS Equity Units. The proceeds in
excess of the purchase price of the portfolio of U.S. Treasury securities, net
of the remarketing agent's fee, were equal to $847,754 (or approximately $0.1073
per Corporate MEDS Equity Unit) and will be distributed to holders who were
record holders of the MEDS Equity Units on March 18, 2005.
On May 16, 2005, upon settlement of the stock purchase contract, KeySpan
Corporation will deliver between approximately 10.9 million and 13.0 million
shares of its common stock.
"We are very pleased with the success of the remarketing of KeySpan's MEDS
Equity Units," said Gerald Luterman, Executive Vice President and Chief
Financial Officer. "This deal was well received in the market, supported by
KeySpan's strong credit position and liquidity."
This press release does not constitute an offer of any securities. The
remarketing will only be made pursuant to a prospectus supplement and
accompanying prospectus which, when finalized, may be obtained from J.P. Morgan
Securities Inc, 270 Park Ave, New York, NY 10017, Attn: Investment Grade
Syndicate Desk, 212-834-4533.
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KeySpan Corporation's long-term debt is rated `A' (stable outlook) by Standard &
Poor's and `A3' (negative outlook) by Moody's Investor Services.
A member of the Standard & Poor's 500 Index, KeySpan Corporation (NYSE:KSE) is
the fifth largest distributor of natural gas in the United States and the
largest in the Northeast, operating regulated gas utilities in New York,
Massachusetts, and New Hampshire that serve 2.6 million customers. These
customer-focused businesses are complemented by a portfolio of service companies
that offer energy-related products, services, and solutions to homes and
businesses. KeySpan is also the largest electric generator in New York State,
with approximately 6,600 megawatts of generating capacity that provides power to
1.1 million customers of the Long Island Power Authority (LIPA) on Long Island
and supplies approximately 25 percent of New York City's capacity needs. KeySpan
also operates LIPA's transmission and distribution system under contract to
LIPA. In addition to these assets, KeySpan has strategic investments in pipeline
transportation, distribution, storage, and production. KeySpan has headquarters
in Brooklyn, New England, and Long Island. For more information, visit KeySpan's
web site at www.keyspanenergy.com.
Certain statements contained herein are forward-looking statements, which
reflect numerous assumptions and estimates and involve a number of risks and
uncertainties. For these statements, we claim the protection of the safe harbor
for forward-looking statements provided by the Private Securities Litigation
Reform Act of 1995. There are possible developments that could cause our actual
results to differ materially from those forecasted or implied in the
forward-looking statements. You are cautioned not to place undue reliance on
these forward-looking statements, which are current only as of the date of this
filing. We disclaim any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. Among the factors that could cause actual results to differ
materially are: general economic conditions, especially in the Northeast United
States; available sources and costs of fuel; volatility of energy prices in a
deregulated market environment as well as in the source of natural gas and fuel
used to generate electricity; potential write-down of the carrying value of our
investment in certain unregulated subsidiaries and natural gas properties when
natural gas prices are depressed or if we have significant downward revisions in
our estimated proved gas reserves; federal and state regulatory initiatives that
increase competition, threaten cost and investment recovery and impact rate
structure; our ability to successfully reduce our cost structures;
implementation of new accounting standards; the degree to which we develop
unregulated business ventures, as well as federal and state regulatory policies
affecting our ability to retain and operate those business ventures; our ability
to identify and make complementary acquisitions, as well as the successful
integration of those acquisitions; inflationary trends and interest rates; and
risks detailed from time to time in reports and other documents filed by us with
the Securities and Exchange Commission.
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