PrefBlog

Brookfield Infrastructure Partners L.P. has announced:

that it has determined the fixed distribution rate on its Cumulative Class A Preferred Limited Partnership Units, Series 3 (“Series 3 Units”) (TSX: BIP.PR.B) for the five years commencing January 1, 2021 and ending December 31, 2025.

Series 3 Units and Series 4 Units

If declared, the fixed quarterly distributions on the Series 3 Units during the five years commencing January 1, 2021 will be paid at an annual rate of 5.50% ($0.34375 per unit per quarter).

Holders of Series 3 Units have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on December 16, 2020, to reclassify all or part of their Series 3 Units, on a one-for-one basis, into Cumulative Class A Preferred Limited Partnership Units, Series 4 (“Series 4 Units”), effective December 31, 2020.

The quarterly floating rate distributions on the Series 4 Units will be paid at an annual rate, calculated for each quarter, of 4.53% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly distribution rate in respect of the January 1, 2021 to March 31, 2021 distribution period for the Series 4 Units will be 1.14386% (4.639% on an annualized basis) and the distribution, if declared, for such distribution period will be $0.285965 per unit, payable on March 31, 2021.

Holders of Series 3 Units are not required to elect to reclassify all or any part of their Series 3 Units into Series 4 Units.

As provided in the unit conditions of the Series 3 Units, (i) if Brookfield Infrastructure determines that there would be fewer than 1,000,000 Series 3 Units outstanding after December 31, 2020, all remaining Series 3 Units will be automatically reclassified into Series 4 Units on a one-for-one basis effective December 31, 2020; or (ii) if Brookfield Infrastructure determines that there would be fewer than 1,000,000 Series 4 Units outstanding after December 31, 2020, no Series 3 Units will be reclassified into Series 4 Units. There are currently 4,989,262 Series 3 Units outstanding.

The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series 4 Units effective upon reclassification. Listing of the Series 4 Units is subject to Brookfield Infrastructure fulfilling all the listing requirements of the TSX and, upon approval, the Series 4 Units will be listed on the TSX under the trading symbol “BIP.PR.G”.

BIP.PR.B was issued as a FixedReset, 5.50%+453M550 (Interest + ROC), that commenced trading 2015-12-8 after being announced announced 2015-12-1. It is tracked by HIMIPref™ and is assigned to the FixedReset-Premium subindex.

This entry was posted on Wednesday, December 2nd, 2020 at 10:31 pm 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.