{"id":46086,"date":"2023-12-01T20:54:19","date_gmt":"2023-12-02T01:54:19","guid":{"rendered":"https:\/\/prefblog.com\/?p=46086"},"modified":"2023-12-01T20:54:19","modified_gmt":"2023-12-02T01:54:19","slug":"bpo-pr-t-to-reset-to-6-79","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=46086","title":{"rendered":"BPO.PR.T To Reset To 6.79%"},"content":{"rendered":"

Brookfield Office Properties Inc., a subsidiary of Brookfield Property Partners L.P. has announced<\/a>:<\/p>\n

the reset dividend rate on its Class AAA Preference Shares, Series T (\u201cSeries T Shares\u201d) (TSX: BPO.PR.T).<\/p>\n

If declared, the fixed quarterly dividends on the Series T Shares for the five years commencing January 1, 2024 and ending December 31, 2028 will be paid at an annual rate of 6.79% ($0.424375 per share per quarter).<\/p>\n

Holders of Series T Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on December 18, 2023, to convert all or part of their Series T Shares, on a one-for-one basis, into Class AAA Preference Shares, Series U (the \u201cSeries U Shares\u201d), effective December 31, 2023.<\/p>\n

The quarterly floating rate dividends on the Series U Shares have an annual rate, calculated for each quarter, of 3.16% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate for the January 1, 2024 to March 31, 2024 dividend period for the Series U Shares will be 2.04438% (8.2% on an annualized basis) and the dividend, if declared, for such dividend period will be $0.511095 per share, payable on March 31, 2024.<\/p>\n

Holders of Series T Shares are not required to elect to convert all or any part of their Series T Shares into Series U Shares.<\/p>\n

As provided in the share conditions of the Series T Shares, (i) if Brookfield determines that there would be fewer than 1,000,000 Series T Shares outstanding after December 31, 2023, all remaining Series T Shares will be automatically converted into Series U Shares on a one-for-one basis effective December 31, 2023; and (ii) if Brookfield determines that there would be fewer than 1,000,000 Series U Shares outstanding after December 31, 2023, no Series T Shares will be permitted to be converted into Series U Shares. There are currently 10,000,000 Series T Shares outstanding.<\/p>\n

The Toronto Stock Exchange (\u201cTSX\u201d) has conditionally approved the listing of the Series U Shares effective upon conversion. Listing of the Series U Shares is subject to Brookfield fulfilling all the listing requirements of the TSX and, upon approval, the Series U Shares will be listed on the TSX under the trading symbol \u201cBPO.PR.Z\u201d.<\/p><\/blockquote>\n

BPO.PR.T is a FixedReset, 4.60%+316, that commenced trading 2012-9-13<\/a> after being announced 2012-9-5<\/a>. BPO.PR.T reset at 5.383% effective January 1, 2019<\/a>; I recommended against conversion<\/a>; and there was no conversion<\/a>. The issue is tracked by HIMIPref\u2122, but relegated to the Scraps – FixedReset Discount index on credit concerns.<\/p>\n

Thanks to Assiduous Reader Fuzzybear<\/i> for bringing this to my attention<\/a>.<\/p>\n

Update, 2023-12-5<\/b>: It has been observed<\/a> that there is a discrepancy between the underlying GOC-5 rates for the resets of BPO.pr.T, CPX.PR.C<\/a> and BIP.PR.F<\/a>. I think<\/a> that this is due to an error or choice in investors’ favour by BPO.<\/p>\n","protected":false},"excerpt":{"rendered":"

Brookfield Office Properties Inc., a subsidiary of Brookfield Property Partners L.P. has announced: the reset dividend rate on its Class AAA Preference Shares, Series T (\u201cSeries T Shares\u201d) (TSX: BPO.PR.T). If declared, the fixed quarterly …<\/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-46086","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/46086","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=46086"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/46086\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}