BPO.PR.J: Partial Call for Redemption

Brookfield Office Properties Inc., a subsidiary of Brookfield Property Partners L.P., has announced:

that it intends to:
  • •Redeem 4,760,750 of its outstanding Class AAA Preference Shares, Series J (TSX: BPO.PR.J) (the “Called Series J Shares”), all of which are beneficially held by CDS & Co., as nominee of CDS Clearing and Depositary Services Inc., for cash on March 31, 2017. The redemption price for each such share will be C$25.00 plus accrued and unpaid dividends thereon (which as of March 31, 2017 will be C$0), representing a total redemption price of C$25.00. The Called Series J Shares will be redeemed on a “pro rata” basis, so that each holder of Class AAA Preference Shares, Series J will have 62.9267290063042% of their Class AAA Preference Shares, Series J redeemed. The pro rata call will be based upon participants’ holdings at the close of business on March 29, 2017.

Notices of Redemption for both series have been sent to CDS & Co. Payment of the redemption price will be made on or after March 31, 2017 through the facilities of CDS & Co. to all beneficial holders of the Called Series J Shares …

Gotta love the 15 significant figures quoted as the proportion to be redeemed!

BPO.PR.J is a 5.00% Retractible, issued 2004-4-30. It became retractible for shares on 2014-12-31. There was a partial exchange of BPO.PR.J for BPS.PR.B in 2014; BPS is Brookfield Property Split Corp.

So anyway, now we know what the company meant in its press release announcing the issue currently trading as BPO.PR.E. Good catch by Assiduous Reader mbarbon in highlighting their sentence:

The net proceeds of the issue will be used by Brookfield Office Properties for general corporate purposes which may include the redemption of existing preferred shares.

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