PrefBlog

Brookfield Office Properties has announced:

that it has agreed to issue to a syndicate of underwriters led by CIBC, RBC Capital Markets, Scotiabank and TD Securities Inc., for distribution to the public, eight million Cumulative Class AAA Rate Reset Preference Shares, Series T (the “Preferred Shares, Series T”). The Preferred Shares, Series T will be issued at a price of C$25.00 per share, for aggregate proceeds of C$200 million. Holders of the Preferred Shares, Series T will be entitled to receive a cumulative quarterly fixed dividend yielding 4.60% annually for the initial period ending December 31, 2018. Thereafter, the dividend rate will be reset every five years at a rate equal to the five-year Government of Canada bond yield plus 3.16%.

Holders of Preferred Shares, Series T will have the right, at their option, to convert their shares into Cumulative Class AAA Preference Shares, Series U (the “Preferred Shares, Series U”), subject to certain conditions, on December 31, 2018 and on December 31 every five years thereafter. Holders of Preferred Shares, Series U will be entitled to receive cumulative quarterly floating dividends at a rate equal to the 90-day Government of Canada Treasury Bill yield plus 3.16%.

Brookfield Office Properties has granted the underwriters an option, exercisable in whole or in part anytime up to two business days prior to closing, to purchase an additional two million Preferred Shares, Series T at the same offering price. Should the option be fully exercised, the total gross proceeds of the financing will be C$250 million.

The Preferred Shares, Series T will be offered by way of a prospectus supplement to the short-form base shelf prospectus of Brookfield Office Properties Inc. dated January 3, 2012. The prospectus supplement will be filed with securities regulatory authorities in all provinces of Canada.

The net proceeds of the issue will be used to redeem Brookfield Office Properties’ Cumulative Class AAA Preference Shares, Series F and, to the extent the underwriters’ option is exercised, for general corporate purposes. The offering is expected to close on or about September 13, 2012.

BPO has the following series of FixedResets already outstanding:

Update: Rated Pfd-3(high) by DBRS.

This entry was posted on Wednesday, September 5th, 2012 at 12:12 pm and is filed under New Issues. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.