Brookfield Asset Management has announced:
the completion of its previously announced Preferred Shares, Series 28 issue in the amount of CDN$215 million.
Brookfield issued 8,600,000 Preferred Shares, Series 28 at a price of $25.00 per share, for gross proceeds of CDN$215,000,000. Holders of the Preferred Shares, Series 28 will be entitled to receive a cumulative quarterly fixed dividend yielding 4.60% annually for the initial period ending June 30, 2017. Thereafter, the dividend rate will be reset every five years at a rate equal to the 5-year Government of Canada bond yield plus 1.80%. The Preferred Shares, Series 28 will commence trading on the Toronto Stock Exchange on February 8, 2011 under the ticker symbol BAM.PR.X.
Brookfield has granted the underwriters an over-allotment option, exercisable for a period of 30 days following closing, to purchase up to an additional 1,290,000 Preferred Shares, Series 28 which, if exercised, would increase the gross offering size to CDN$247,250,000.
The net proceeds of the issue will be used for general corporate purposes, including funding a portion of the company’s acquisition of additional common shares in U.S. mall operator General Growth Properties Inc.
The issue is a FixedReset, 4.60%+180, announced January 19.
The issue traded 206,559 shares today in a range of 24.63-88 before closing as 24.70-75.
Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2041-02-08
Maturity Price : 22.99
Evaluated at bid price : 24.70
Bid-YTW : 4.55 %
BAM.PR.X will be tracked by HIMIPref™ and incorporated in the FixedReset index.