Brookfield Corporation has announced:
that it has agreed to issue 6,000,000 Class A Preference Shares, Series 56 (“Preferred Shares, Series 56”) on a bought deal basis to a syndicate of underwriters (the “Underwriters”) led by RBC Capital Markets, BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., Scotiabank and TD Securities Inc. for distribution to the public. The Preferred Shares, Series 56 will be issued at a price of C$25.00 per share, for aggregate gross proceeds of C$150,000,000 (the “Offering”). Holders of the Preferred Shares, Series 56 will be entitled to receive a cumulative quarterly fixed dividend yielding 5.65% annually for the initial period ending December 31, 2031. 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 2.15% and (ii) 5.65%.
In connection with the Offering, 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 56 which, if exercised, would increase the gross offering size to C$200,000,000. The Preferred Shares, Series 56 will be offered in all provinces of Canada by way of a supplement (the “Prospectus Supplement”) to Brookfield’s existing short form base shelf prospectus dated December 19, 2025 (the “Base Shelf Prospectus”). The Preferred Shares, Series 56 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 from the Offering for general corporate purposes. The Offering is expected to close on or about October 22, 2026.
Access to the Prospectus Supplement, the Base Shelf Prospectus and any amendments to the documents is provided in accordance with securities legislation relating to procedures for providing access to a shelf prospectus supplement, a base shelf prospectus and any amendments to those documents. The Base Shelf Prospectus is, and the Prospectus Supplement will be (within two business days of the date hereof), accessible on SEDAR+ at www.sedarplus.ca. An electronic or paper copy of the Prospectus Supplement, the Base Shelf Prospectus and any amendments to those documents may be obtained, without charge, from any of the joint bookrunners by contacting RBC Capital Markets by email at Distribution.RBCDS@rbccm.com, BMO Capital Markets by email at torbramwarehouse@datagroup.ca, CIBC Capital Markets by email at mailbox.canadianprospectus@cibc.com, National Bank Financial Inc. by email at NBF-Syndication@bnc.ca, Scotiabank by email at equityprospectus@scotiabank.com, and TD Securities Inc. by email at sdcconfirms@td.com.
Prospective investors should read the Base Shelf Prospectus and the Prospectus Supplement (when filed) in their entirety before making an investment decision.
I’ve said it before: it’s nice to see a new issue and even better that it’s investment grade, but does it really have to be Brookfield? We’ve got enough of those! While one swallow doesn’t make a summer, there will be those who take the view that this means the preferred share market is no longer as stupid-cheap for investors (and therefore stupid-expensive for issuers) as it used to be. But I’m going to wait for a little more confirmation before I take a view on that one!
Thanks to Assiduous Reader IrateAR for bringing this to my attention!