New Issue: BPO FixedReset 6.75%+417

Issue: Brookfield Properties Corporation. Cumulative Class AAA Rate Reset Preference Shares Series L

Size: 6-million shares (=$150-million) + greenshoe 0.9-million shares (=$22.5-million)

Dividend: 6.75% (=$1.6875) p.a. until first Exchange Date, then resets to 5-Year GOC +417 if not called or exchanged. First Dividend $0.45308 payable 2009-12-31. Cumulative.

Exchange Dates: 2014-9-30 and every five years thereafter

Exchange: Every Exchange Date to and from Series M Floaters

Redemption: Every Exchange Date at $25.00. Series M are also redeemable at 25.50 at any time.

Closing: 2009-9-24

Update: Brookfield Properties has announced:

that as a result of strong investor demand for its previously announced public offering of 6.75% Preferred Shares, Series L, it has agreed to increase the size of the offering from C$150 million to C$250 million, or from 6.0 million shares to 10.0 million shares. The issue will be led by a syndicate of underwriters including CIBC and Scotia Capital Inc. for distribution to the public. The Preferred Shares, Series L will be issued at a price of C$25.00 per share, for aggregate gross proceeds of C$250 million. Holders of the Preferred Shares, Series L will be entitled to receive a cumulative quarterly fixed dividend yielding 6.75% annually for the initial five year period ending September 30, 2014. The dividend rate will be reset on September 30, 2014 and every five years thereafter at a rate equal to the 5-year Government of Canada bond yield plus 4.17%.

Holders of Preferred Shares, Series L will have the right, at their option, to convert their shares into cumulative Preferred Shares, Series M, subject to certain conditions, on September 30, 2014 and on September 30 every five years thereafter. Holders of the Preferred Shares, Series M will be entitled to receive cumulative quarterly floating dividends at a rate equal to the three-month Government of Canada Treasury Bill yield plus 4.17%.

Brookfield Properties Corporation has granted the underwriters an over-allotment option, exercisable in whole or in part anytime up to 30 days following closing, to purchase an additional 1,500,000 Preferred Shares, Series L at the same offering price. Should the over-allotment option be fully exercised, the total gross proceeds of the financing will be C$287.5 million.

2 Responses to “New Issue: BPO FixedReset 6.75%+417”

  1. […] forty member in the index that won’t amount to much, and the recent new issue announcements (BPO 6.75%+417, DC, 6.75%+410, WES Convertible, ETC, 7.25%+453) have been of relatively low credit […]

  2. […] the new FixedReset 6.75%+417 announced August 21 has closed […]

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