{"id":261,"date":"2006-11-09T12:02:20","date_gmt":"2006-11-09T16:02:20","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=261"},"modified":"2006-11-09T12:02:20","modified_gmt":"2006-11-09T16:02:20","slug":"brookfield-asset-new-issue-perp-475","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=261","title":{"rendered":"Brookfield Asset New Issue : Perp, 4.75%"},"content":{"rendered":"<p>I have been advised that there is a new issue contemplated: Brookfield Asset Management, 4.75%, Perpetual.<\/p>\n<p>8-million shares at $25.00 : $200-million issue.<\/p>\n<p>Closing Nov. 20, 2006<\/p>\n<p>Options:<\/p>\n<ul>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2012-01-31\u00a0\u00a0\u00a0\u00a0\u00a0 2013-01-30\u00a0 26.000000<\/li>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2013-01-31\u00a0\u00a0\u00a0\u00a0\u00a0 2014-01-30\u00a0 25.750000<\/li>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2014-01-31\u00a0\u00a0\u00a0\u00a0\u00a0 2015-01-30\u00a0 25.500000<\/li>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2015-01-31\u00a0\u00a0\u00a0\u00a0\u00a0 2016-01-30\u00a0 25.250000<\/li>\n<li>Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2016-01-31\u00a0\u00a0 INFINITE DATE\u00a0 25.000000<\/li>\n<\/ul>\n<p>Initial reaction:<\/p>\n<p>More or less fairly priced, if it stays highly liquid. Compare it with the WN.PR.E, which has the same coupon and credit rating; the call schedule commences 6 months earlier; and it closed last night at $24.98-04.<\/p>\n<div align=\"center\">\n<table border=\"1\">\n<tr>\n<td colspan=\"3\"><strong>Comparison using &#8220;Taxable Curve&#8221;<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Component of Curve Price<\/td>\n<td>BAM.PR.?<\/td>\n<td>WN.PR.E<\/td>\n<\/tr>\n<tr>\n<td>Price due to base-rate<\/td>\n<td>24.03<\/td>\n<td>24.14<\/td>\n<\/tr>\n<tr>\n<td>Price due to short-term<\/td>\n<td>0.09<\/td>\n<td>0.09<\/td>\n<\/tr>\n<tr>\n<td>Price due to long-term<\/td>\n<td>0.46<\/td>\n<td>0.49<\/td>\n<\/tr>\n<tr>\n<td>Price to to Cumulative Dividends<\/td>\n<td>0.05<\/td>\n<td>0.05<\/td>\n<\/tr>\n<tr>\n<td>Price due to Credit Spread (2)<\/td>\n<td>-0.48<\/td>\n<td>-0.52<\/td>\n<\/tr>\n<tr>\n<td>Price due to Credit Spread (Low)<\/td>\n<td>-0.48<\/td>\n<td>-0.52<\/td>\n<\/tr>\n<tr>\n<td>Price due to error<\/td>\n<td>0.00<\/td>\n<td>0.06<\/td>\n<\/tr>\n<tr>\n<td><strong>Intrinsic Value<\/strong><\/td>\n<td><strong>23.67<\/strong><\/td>\n<td><strong>23.79<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Price due to Liquidity<\/td>\n<td>1.49?<\/td>\n<td>1.49<\/td>\n<\/tr>\n<tr>\n<td><strong>Curve Price<\/strong><\/td>\n<td><strong>25.16<\/strong><\/td>\n<td><strong>25.28<\/strong><\/td>\n<\/tr>\n<\/table>\n<\/div>\n<p><!--65950f5b5e6dcba512ce1d2bf53a0790--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I have been advised that there is a new issue contemplated: Brookfield Asset Management, 4.75%, Perpetual. 8-million shares at $25.00 : $200-million issue. Closing Nov. 20, 2006 Options: Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2012-01-31\u00a0\u00a0\u00a0\u00a0\u00a0 2013-01-30\u00a0 26.000000 Redemption\u00a0\u00a0\u00a0\u00a0\u00a0 2013-01-31\u00a0\u00a0\u00a0\u00a0\u00a0 2014-01-30\u00a0 &hellip;<\/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-261","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/261","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=261"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/261\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}