PrefBlog

Brookfield Asset Management Inc. has announced:

that it has determined the fixed dividend rate on its Cumulative Class A Preference Shares, Series 28 (“Series 28 Shares”) (TSX: BAM.PR.X) for the five years commencing July 1, 2022 and ending June 30, 2027.

If declared, the fixed quarterly dividends on the Series 28 Shares during the five years commencing July 1, 2022 will be paid at an annual rate of 4.606% ($0.287875 per share per quarter).

Holders of Series 28 Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2022, to convert all or part of their Series 28 Shares, on a one-for-one basis, into Cumulative Class A Preference Shares, Series 29 (the “Series 29 Shares”), effective June 30, 2022. The quarterly floating rate dividends on the Series 29 Shares will be paid at an annual rate, calculated for each quarter, of 1.80% over the annual yield on the three-month Government of Canada treasury bills. The actual quarterly dividend rate in respect of the July 1, 2022 to September 30, 2022 dividend period for the Series 29 Shares will be 0.82598% (3.277% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.2065 per share, payable on September 30, 2022.

Holders of Series 28 Shares are not required to elect to convert all or any part of their Series 28 Shares into Series 29 Shares.

As provided in the share conditions of the Series 28 Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series 28 Shares outstanding after June 30, 2022, all remaining Series 28 Shares will be automatically converted into Series 29 Shares on a one-for-one basis effective June 30, 2022; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series 29 Shares outstanding after June 30, 2022, no Series 28 Shares will be permitted to be converted into Series 29 Shares. There are currently 9,233,927 Series 28 Shares outstanding.

The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series 29 Shares effective upon conversion. Listing of the Series 29 Shares is subject to Brookfield fulfilling all the listing requirements of the TSX.

BAM.PR.X was issued as a FixedReset, 4.60%+180, that commenced trading 2011-2-8 after being announced 2011-1-19. It reset at 2.727% in 2017. I recommended against conversion and there was no conversion.It is included in the FixedReset (Discount) subindex.

Thanks to Assiduous Reader CanSiamCyp for ensuring I was aware of this!

This entry was posted on Thursday, June 2nd, 2022 at 7:21 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.