New Issue: BAM 4.85% Straight Perpetual

Brookfield Asset Management has announced:

that it has agreed to issue 6,000,000 4.85% perpetual Class A Preferred Shares, Series 36 (“Preferred Shares”) on a bought deal basis to a syndicate of underwriters led by Scotiabank, CIBC, RBC Capital Markets and TD Securities Inc. for distribution to the public. The Preferred Shares will be issued at a price of CDN$25.00 per share, for aggregate gross proceeds of CDN$150,000,000.

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 which, if exercised, would increase the gross offering size to CDN$200,000,000. The Preferred Shares 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 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.

The net proceeds of the issue will be used for general corporate purposes. The offering of Preferred Shares is expected to close on or about November 27, 2012.

It’s nice to see another Straight Perpetual coming out – too bad it’s from BAM! They’ve got so many issues outstanding already … and their investment grade credit rating has been the subject of nervous announcements from DBRS and S&P.

One Response to “New Issue: BAM 4.85% Straight Perpetual”

  1. […] is a Straight Perpetual, 4.85%, announced November 20. The issue size of $200-million indicates that the greenshoe option was exercised in […]

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