New Issue: BAM FixedReset 4.20%+263

Brookfield Asset Management has announced:

that it has agreed to issue 8,000,000 Class A Preferred Shares, Series 34 on a bought deal basis to a syndicate of underwriters led by TD Securities Inc., CIBC, RBC Capital Markets and Scotia Capital Inc. for distribution to the public. The Preferred Shares, Series 34 will be issued at a price of CDN$25.00 per share, for aggregate gross proceeds of CDN$200,000,000. Holders of the Preferred Shares, Series 34 will be entitled to receive a cumulative quarterly fixed dividend yielding 4.20% annually for the initial period ending March 31, 2019. Thereafter, the dividend rate will be reset every five years at a rate equal to the 5-year Government of Canada bond yield plus 2.63%.

Brookfield has granted the underwriters an option, exercisable until 48 hours prior to closing, to purchase up to an additional 2,000,000 Preferred Shares, Series 34 which, if exercised, would increase the gross offering size to CDN$250,000,000. The Preferred Shares, Series 34 will be offered in all provinces of Canada by way of a supplement to Brookfield Asset Management’s existing short form base shelf prospectus dated June 7, 2011 as amended on June 13, 2012. The Preferred Shares, Series 34 may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements under the U.S. Securities Act.

Brookfield intends to use the net proceeds of the issue of Preferred Shares, Series 34 to redeem its Class A Preference Shares, Series 11 and for general corporate purposes. The offering of Preferred Shares, Series 34 is expected to close on or about September 12, 2012.

The Series 11 preferred shares that will be redeemed are BAM.PR.I, an OperatingRetractible.

2 Responses to “New Issue: BAM FixedReset 4.20%+263”

  1. […] PrefBlog Canadian Preferred Shares – Data and Discussion « New Issue: BAM FixedReset 4.20%+263 […]

  2. […] is a FixedReset, 4.20%+263, announced August 23. The issue traded 332,922 shares today in a range of 24.91-00 before closing at 24.96-00, […]

Leave a Reply

You must be logged in to post a comment.