Brookfield Renewable Energy Partners has announced:
the completion of the previously announced offering of 10,000,000 Class A Preference Shares, Series 3 (the “Series 3 Shares”), (including 2,000,000 Series 3 Shares sold pursuant to an underwriters’ option that was exercised in full prior to closing), at a price of CDN$25.00 per Series 3 Share, for total gross proceeds of CDN$250,000,000. The offering was underwritten by a syndicate led by TD Securities Inc., CIBC, RBC Capital Markets and Scotiabank.
A subsidiary of Brookfield Renewable issued the Series 3 Shares, which are guaranteed by Brookfield Renewable. Holders of the Series 3 Shares will be entitled to receive fixed cumulative dividends yielding 4.4% at the issue price annually and payable quarterly for the initial period ending July 31, 2019. Thereafter, the dividend rate will be reset every five years at a rate equal to the then five-year Government of Canada bond yield plus 2.94%.
Brookfield Renewable intends to use the net proceeds of the issue of the Series 3 Shares to repay outstanding indebtedness and for general corporate purposes.
The Series 3 Shares will commence trading today on the Toronto Stock Exchange under the ticker symbol BRF.PR.C.
BRF.PR.C is a FixedReset, 4.40%+294, announced October 1. This issue will be tracked by HIMIPref™, but assigned to the Scraps index on credit concerns.
The issue traded 552,596 shares today in a range of 24.99-05 before closing at 25.01-02, 14×359. Vital statistics are:
Maturity Type : Limit Maturity
Maturity Date : 2042-10-11
Maturity Price : 23.09
Evaluated at bid price : 25.01
Bid-YTW : 4.21 %