Brookfield Asset Management Inc. has announced:
the results of the exercise of the conversion privilege for its Class A Preference Shares, Series 8 (the “Series 8 Preferred Shares”) (TSX: BAM.PR.E) and its Class A Preference Shares, Series 9 (the “Series 9 Preferred Shares”) (TSX: BAM.PR.G).
Holders of the company’s Series 8 Preferred Shares and Series 9 Preferred Shares had the right to exchange their shares for the other series effective November 1, 2016, if they submitted an election to convert their shares on or prior to October 18, 2016. Holders of 435,513 Series 8 Preferred Shares have elected to convert these shares into an equivalent number of Series 9 Preferred Shares, and holders of 1,262,704 Series 9 Preferred Shares have elected to convert these shares into an equivalent number of Series 8 Preferred Shares.
These conversions will be effective on November 1, 2016. Following these conversions, there will be 2,479,585 Series 8 Preferred Shares and 5,519,415 Series 9 Preferred Shares issued and outstanding.
The Series 8 Preferred Shares pay a monthly floating rate dividend based on the Prime Rate, adjusted to reflect the trading price of these shares. The most recent monthly dividend paid on these shares on October 12, 2016 reflected an annualized dividend rate of 2.70%. The Series 9 Preferred Shares pay a quarterly dividend which is reset every five years based on a percentage of the five-year rate offered on Government of Canada bonds at the time. As previously announced, the annual rate on the Series 9 Preferred Shares has been reset at 2.75% commencing with the dividend payable on February 1, 2017.
Holders of the company’s Series 8 and Series 9 Preferred Shares will again have the opportunity to convert their shares into the other series effective November 1, 2021 and every five years thereafter.
Assiduous Readers will remember that I recommended conversion to BAM.PR.E when the reset rate of 2.75% on BAM.PR.G was announced.
This entry was posted on Wednesday, October 19th, 2016 at 1:13 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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BAM.PR.E / BAM.PR.G: 10% Net Exchange To “E” Leaves 69% “G”
Brookfield Asset Management Inc. has announced:
Assiduous Readers will remember that I recommended conversion to BAM.PR.E when the reset rate of 2.75% on BAM.PR.G was announced.
This entry was posted on Wednesday, October 19th, 2016 at 1:13 am and is filed under Issue Comments. 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.