{"id":40935,"date":"2020-06-01T22:21:45","date_gmt":"2020-06-02T03:21:45","guid":{"rendered":"http:\/\/prefblog.com\/?p=40935"},"modified":"2020-06-01T22:21:45","modified_gmt":"2020-06-02T03:21:45","slug":"bip-pr-a-to-reset-to-3-974","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=40935","title":{"rendered":"BIP.PR.A To Reset To 3.974%"},"content":{"rendered":"

Brookfield Infrastructure Partners L.P. has announced<\/a>:<\/p>\n

that it has determined the fixed distribution rate on its Cumulative Class A Preferred Limited Partnership Units, Series 1 (\u201cSeries 1 Units\u201d) (TSX: BIP.PR.A) for the five years commencing July 1, 2020 and ending June 30, 2025.<\/p>\n

Series 1 Units and Series 2 Units<\/p>\n

If declared, the fixed quarterly distributions on the Series 1 Units during the five years commencing July 1, 2020 will be paid at an annual rate of 3.974% ($0.248375 per unit per quarter).<\/p>\n

Holders of Series 1 Units have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on June 15, 2020, to reclassify all or part of their Series 1 Units, on a one-for-one basis, into Cumulative Class A Preferred Limited Partnership Units, Series 2 (the \u201cSeries 2 Units\u201d), effective June 30, 2020.<\/p>\n

The quarterly floating rate distributions on the Series 2 Units will be paid at an annual rate, calculated for each quarter, of 3.56% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly distribution rate in respect of the July 1, 2020 to September 30, 2020 distribution period for the Series 2 Units will be 0.96159% (3.815% on an annualized basis) and the distribution, if declared, for such distribution period will be $0.2403975 per unit, payable on September 30, 2020.<\/p>\n

Holders of Series 1 Units are not required to elect to reclassify all or any part of their Series 1 Units into Series 2 Units.<\/p>\n

As provided in the unit conditions of the Series 1 Units, (i) if Brookfield Infrastructure determines that there would be fewer than 1,000,000 Series 1 Units outstanding after June 30, 2020, all remaining Series 1 Units will be automatically reclassified into Series 2 Units on a one-for-one basis effective June 30, 2020; or (ii) if Brookfield Infrastructure determines that there would be fewer than 1,000,000 Series 2 Units outstanding after June 30, 2020, no Series 1 Units will be permitted to be reclassified into Series 2 Units. There are currently 4,989,265 Series 1 Units outstanding.<\/p>\n

The Toronto Stock Exchange (\u201cTSX\u201d) has conditionally approved the listing of the Series 2 Units effective upon reclassification. Listing of the Series 2 Units is subject to Brookfield Infrastructure fulfilling all the listing requirements of the TSX and, upon approval, the Series 2 Units will be listed on the TSX under the trading symbol \u201cBIP.PR.G\u201d.<\/p><\/blockquote>\n

BIP.PR.A is a FixedReset, 4.50%+356, that commenced trading 2015-3-12<\/a> after being announced 2015-3-4<\/a>. It is tracked by HIMIPref™ and is assigned to the FixedResets (Discount) subindex.<\/p>\n

Note that the tax treatment of distributions on BIP.PR.A are complex and change annually<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Brookfield Infrastructure Partners L.P. has announced: that it has determined the fixed distribution rate on its Cumulative Class A Preferred Limited Partnership Units, Series 1 (\u201cSeries 1 Units\u201d) (TSX: BIP.PR.A) for the five years commencing …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-40935","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/40935","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=40935"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/40935\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}