Brookfield Office Properties Inc., a subsidiary of Brookfield Property Partners L.P. has announced:
the reset dividend rate on its Class AAA Preference Shares, Series T (“Series T Shares”) (TSX: BPO.PR.T).
If declared, the fixed quarterly dividends on the Series T Shares for the five years commencing January 1, 2024 and ending December 31, 2028 will be paid at an annual rate of 6.79% ($0.424375 per share per quarter).
Holders of Series T Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on December 18, 2023, to convert all or part of their Series T Shares, on a one-for-one basis, into Class AAA Preference Shares, Series U (the “Series U Shares”), effective December 31, 2023.
The quarterly floating rate dividends on the Series U Shares have an annual rate, calculated for each quarter, of 3.16% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate for the January 1, 2024 to March 31, 2024 dividend period for the Series U Shares will be 2.04438% (8.2% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.511095 per share, payable on March 31, 2024.
Holders of Series T Shares are not required to elect to convert all or any part of their Series T Shares into Series U Shares.
As provided in the share conditions of the Series T Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series T Shares outstanding after December 31, 2023, all remaining Series T Shares will be automatically converted into Series U Shares on a one-for-one basis effective December 31, 2023; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series U Shares outstanding after December 31, 2023, no Series T Shares will be permitted to be converted into Series U Shares. There are currently 10,000,000 Series T Shares outstanding.
The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series U Shares effective upon conversion. Listing of the Series U Shares is subject to Brookfield fulfilling all the listing requirements of the TSX and, upon approval, the Series U Shares will be listed on the TSX under the trading symbol “BPO.PR.Z”.
BPO.PR.T is a FixedReset, 4.60%+316, that commenced trading 2012-9-13 after being announced 2012-9-5. BPO.PR.T reset at 5.383% effective January 1, 2019; I recommended against conversion; and there was no conversion. The issue is tracked by HIMIPref™, but relegated to the Scraps – FixedReset Discount index on credit concerns.
Thanks to Assiduous Reader Fuzzybear for bringing this to my attention.
Update, 2023-12-5: It has been observed that there is a discrepancy between the underlying GOC-5 rates for the resets of BPO.pr.T, CPX.PR.C and BIP.PR.F. I think that this is due to an error or choice in investors’ favour by BPO.
This entry was posted on Friday, December 1st, 2023 at 8:54 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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BPO.PR.T To Reset To 6.79%
Brookfield Office Properties Inc., a subsidiary of Brookfield Property Partners L.P. has announced:
BPO.PR.T is a FixedReset, 4.60%+316, that commenced trading 2012-9-13 after being announced 2012-9-5. BPO.PR.T reset at 5.383% effective January 1, 2019; I recommended against conversion; and there was no conversion. The issue is tracked by HIMIPref™, but relegated to the Scraps – FixedReset Discount index on credit concerns.
Thanks to Assiduous Reader Fuzzybear for bringing this to my attention.
Update, 2023-12-5: It has been observed that there is a discrepancy between the underlying GOC-5 rates for the resets of BPO.pr.T, CPX.PR.C and BIP.PR.F. I think that this is due to an error or choice in investors’ favour by BPO.
This entry was posted on Friday, December 1st, 2023 at 8:54 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.