InstarAGF Essential Infrastructure Fund Invests $75 Million in Steel Reef Infrastructure Corp.

Apr 20, 2016 | Press Releases

InstarAGF Essential Infrastructure Fund Invests $75 Million in Steel Reef Infrastructure Corp.

 

CALGARY, ALBERTA  (April 20, 2016) — InstarAGF Asset Management Inc. (“InstarAGF”) and Steel Reef Infrastructure Corp. (“Steel Reef”) today announced that the InstarAGF Essential Infrastructure Fund (the “Fund”) has invested $75 million of equity in Steel Reef, subscribing for 34,883,721 common shares at a price of $2.15 per share, representing 20.6% of Steel Reef’s outstanding common shares. All amounts are in Canadian dollars.

In connection with the Fund’s investment, Gregory J. Smith, President and Chief Executive Officer of InstarAGF, has been appointed to Steel Reef’s Board of Directors. Formed in 2012, Steel Reef is a privately held Canadian midstream company that owns and operates high-quality processing and transportation facilities which provide value-added services for oil, natural gas and natural gas liquids. These facilities are located in low cost, high-quality formations within the Western Canadian Sedimentary Basin.

InstarAGF, which focuses on mid-sized infrastructure assets in North America in the energy, utilities, civil and social infrastructure categories, achieved the Fund’s first close in March 2016 with Canadian and international institutional and high net-worth investors. The Fund’s portfolio also includes an interest in the passenger terminal at Billy Bishop Toronto City Airport, a vital transportation hub for the city of Toronto and surrounding region, and a 30-megawatt wind power development project in British Columbia that is expected to commence operations in the first quarter of 2017.

“This is an outstanding opportunity for the Fund to acquire a significant minority interest in an established midstream platform that is focused on the middle market, led by a proven management team, and generating stable cash flows,” said Gregory J. Smith. “The basins in which Steel Reef operates are considered superior plays with strong economic fundamentals and low producer breakeven points. Further, Steel Reef has a record of successfully building, acquiring and operating midstream assets, and is actively pursuing a number of opportunities that we expect to create additional value for investors.”

“We are pleased to welcome InstarAGF as an investor in our company,” said Scott Southward, President and Chief Executive Officer of Steel Reef. “This investment will help fund several near-term organic growth initiatives and enable us to pursue new infrastructure projects in top-tier basins. We are focused on maximizing the value of our portfolio, and are well positioned for continuing growth.”

 

About Steel Reef Infrastructure Corp.

Steel Reef is a midstream company focused on strategically partnering with oil and gas exploration, development and production companies to develop a portfolio of midstream assets, through acquisition or construction, while maintaining a regular dividend for its investors. For more information: www.SteelReef.ca

 

About InstarAGF Asset Management

Launched in 2014, InstarAGF is an independent alternative asset management firm with an emphasis on North American middle-market opportunities in the infrastructure sector and other alternative real asset categories. InstarAGF, which makes direct investments and co-investments with like-minded investors and strategic partners, is a joint venture between Instar Group Inc., a company owned by Gregory J. Smith, and AGF Management Limited, one of Canada’s largest independent investment management firms. For more information: www.InstarAGF.com

 

For more information, please contact:
For InstarAGF: 
Sarah Borg-Olivier
Senior Vice President
Email: Sarah.Borg-Olivier@InstarAGF.com
Tel: 416-568-1329

 

For Steel Reef:
Scott Southward
President and Chief Executive Officer
Tel: 403-263-8333

Caroline Banks
Vice President of Finance and Chief Financial Officer
Tel: (403) 263-8333

"Instar" and the Star logo are trademarks of Instar Group Inc. and are used under license. "AGF" and the Tiger logo are trademarks of AGF Management Limited and are used under license. InstarAGF website pages © 2018 AGF Management Limited. All Rights Reserved.

InstarAGF Asset Management Inc.
Toronto Dominion Bank Tower
66 Wellington Street West, 31st Floor
Toronto, ON M5K 1E9
416-815-6224