{"id":13787,"date":"2011-01-19T17:56:53","date_gmt":"2011-01-19T21:56:53","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=13787"},"modified":"2011-01-19T17:56:53","modified_gmt":"2011-01-19T21:56:53","slug":"new-issue-bam-fixedreset-4-60180","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=13787","title":{"rendered":"New Issue: BAM FixedReset 4.60%+180"},"content":{"rendered":"

Brookfield Asset Management has announced<\/a>:<\/p>\n

that it has agreed to issue 8,600,000 Preferred Shares, Series 28 on a bought deal basis to a syndicate of underwriters led by TD Securities Inc., CIBC, RBC Capital Markets and Scotia Capital Inc. for distribution to the public. The Preferred Shares, Series 28 will be issued at a price of $25.00 per share, for aggregate gross proceeds of CDN$215,000,000. Holders of the Preferred Shares, Series 28 will be entitled to receive a cumulative quarterly fixed dividend yielding 4.60% annually for the initial period ending June 30, 2017. Thereafter, the dividend rate will be reset every five years at a rate equal to the 5-year Government of Canada bond yield plus 1.80%.<\/p>\n

Holders of Preferred Shares, Series 28 will have the right, at their option, to convert their shares into cumulative Preferred Shares, Series 29, subject to certain conditions, on June 30, 2017 and on June 30 every five years thereafter. Holders of the Preferred Shares, Series 29 will be entitled to receive cumulative quarterly floating dividends at a rate equal to the three-month Government of Canada Treasury Bill yield plus 1.80%.<\/p>\n

Brookfield Asset Management has granted the underwriters an over-allotment option, exercisable for a period of 30 days following closing, to purchase up to an additional 1,290,000 Preferred Shares, Series 28 which, if exercised, would increase the gross offering size to $247,250,000. The Preferred Shares will be offered in all provinces of Canada by way of short form prospectus.<\/p>\n

The net proceeds of the issue will be used for general corporate purposes, including funding a portion of the company\u2019s acquisition of additional common shares in U.S. mall operator General Growth Properties Inc. The offering is expected to close on or about February 8, 2011.<\/p><\/blockquote>\n

Brookfield’s announcement of the General Growth Properties share purchase<\/a> stated:<\/p>\n

Brookfield will issue 27.5 million Class A shares valued at $907 million to Fairholme based on stock market prices and pay $804 million in cash from general corporate sources to acquire the General Growth shares. <\/p><\/blockquote>\n

As very briefly noted yesterday<\/a>, DBRS noted the deal with Fairholme<\/a> but didn’t say much. They rate this issue Pfd-2(low)<\/a>.<\/p>\n

Update, 2011-1-21<\/b>: The Break Even Rate Shock<\/a> on this issue is 195bp.<\/p>\n

Update, 2011-1-26<\/b>: Brookfield has announced<\/a>:<\/p>\n

that it has agreed to issue approximately 15,300,000 Class A Common Shares (\u201cClass A Shares\u201d), on a bought deal basis, to a syndicate of underwriters led by RBC Capital Markets, CIBC World Markets, TD Securities Inc. and Scotia Capital Inc. (the \u201cUnderwriters\u201d) at a price of C$32.85 per Class A Share (the \u201cOffering Price\u201d) for aggregate gross proceeds of C$502.6 million (the \u201cOffering\u201d).<\/p>\n

In addition, the Company has granted the Underwriters an over-allotment option, exercisable in whole or in part for a period of 30 days following closing, to purchase up to an additional 2,295,000 Class A Shares at the Offering Price, which, if exercised, would increase the gross offering size to C$578.0 million.<\/p>\n

The Class A Shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada and on a private placement basis in the United States pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.<\/p>\n

As previously announced, the Company has acquired 113.3 million common shares of General Growth Properties, Inc. (\u201cGGP\u201d) from The Fairholme Fund for aggregate consideration of approximately US$1.7 billion. The proceeds of the Offering, together with the proceeds of the Company\u2019s previously announced offering of preferred shares, means that the Company\u2019s purchase of the common shares of GGP is financed almost entirely with permanent equity, thoroughly enhancing the Company\u2019s ability to pursue additional investment opportunities. The Offering is expected to close on or about February 15, 2011 and is subject to receipt of all necessary regulatory approvals.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Brookfield Asset Management has announced: that it has agreed to issue 8,600,000 Preferred Shares, Series 28 on a bought deal basis to a syndicate of underwriters led by TD Securities Inc., CIBC, RBC Capital Markets …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-13787","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/13787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13787"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/13787\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}