MARKET DEMAND PUSHES KEYSPAN FIVE-YEAR NOTES OFFERING TO $500 MILLION

KeySpan Corp. (NYSE: KSE) priced $500 million of five-year notes with a 6.15 percent coupon last week. Strong market demand allowed the New York diversified energy supplier to increase the offering from $400 million to the new level, which was priced inside

initial guidance. "We are delighted with the success of this transaction, and it further exemplifies our commitment to providing long-term value to our investors," KeySpan Chairman Robert B. Catell said. J.P. Morgan and Co. was lead underwriter and sole book runner, with 17 banks participating in the underwriting group. KeySpan will use proceeds from the transaction to reduce short-term borrowing and for general corporate purposes.