Brookfield Asset Management Inc. has announced:
that it has agreed to issue 10,000,000 Class A Preferred Shares, Series 46 on a bought deal basis to a syndicate of underwriters led by TD Securities Inc. and Scotiabank for distribution to the public. The Preferred Shares, Series 46 will be issued at a price of C$25.00 per share, for gross proceeds of C$250,000,000. Holders of the Preferred Shares, Series 46 will be entitled to receive a cumulative quarterly fixed dividend yielding 4.80% annually for the initial period ending March 31, 2022. Thereafter, the dividend rate will be reset every five years at a rate equal to the greater of: (i) the 5-year Government of Canada bond yield plus 3.85% and (ii) 4.80%.
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 46 which, if exercised, would increase the gross offering size to C$300,000,000. The Preferred Shares, Series 46 will be offered in all provinces of Canada by way of a supplement to Brookfield’s existing short form base shelf prospectus. The Preferred Shares, Series 46 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 46 for general corporate purposes. The offering of Preferred Shares, Series 46 is expected to close on or about November 18, 2016.
As is usually the case for the BAM series, Implied Volatility analysis yields a mess:
Click for Big
Update, 2016-11-14: They later announced:
that as a result of strong investor demand for its previously announced offering, the underwriters have exercised their option to increase the size of the offering to 12,000,000 Class A Preferred Shares, Series 46. The Preferred Shares, Series 46 will be issued at a price of C$25.00 per share, for gross proceeds of C$300,000,000. The Preferred Shares, Series 46 are being issued on a bought deal basis to a syndicate of underwriters led by TD Securities Inc. and Scotiabank for distribution to the public.
The Preferred Shares, Series 46 will be offered in all provinces of Canada by way of a supplement to Brookfield’s existing short form base shelf prospectus. The Preferred Shares, Series 46 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 46 for general corporate purposes. The offering of Preferred Shares, Series 46 is expected to close on or about November 18, 2016.