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:
| BRF.PR.C | FixedReset | YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2042-10-11 Maturity Price : 23.09 Evaluated at bid price : 25.01 Bid-YTW : 4.21 % |
[…] It was a mildly positive day for the Canadian preferred share market, with PerpetualPremiums up 5bp, FixedResets flat and DeemedRetractibles gaining 2bp. Volume was low, despite the closing of two new issues, GWO.PR.R and BRF.PR.C. […]