{"id":819,"date":"2007-05-02T15:36:49","date_gmt":"2007-05-02T19:36:49","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=819"},"modified":"2007-05-02T15:36:49","modified_gmt":"2007-05-02T19:36:49","slug":"bam-to-spin-off-assets-what-will-the-agencies-say","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=819","title":{"rendered":"BAM to Spin-Off Assets &#8211; What will the Agencies Say?"},"content":{"rendered":"<p>Brookfield Asset Management <a href=\"http:\/\/www.brookfield.com\/newsroom\/pressreleases\/r2007\/r2007-05-02.asp\">has announced<\/a>:<\/p>\n<blockquote><p>Brookfield intends to distribute to its Class A shareholders a direct interest in its infrastructure operations through a newly created publicly traded partnership to be named Brookfield Infrastructure Partners L.P. (\u201cBrookfield Infrastructure\u201d). &#8230; Subject to receipt of the various required approvals, Brookfield will implement the spin-off by way of a special dividend currently estimated to be approximately US$1.00 per Brookfield Class A Share, taking into account the pending three-for-two stock split, or approximately $600 million in aggregate.<\/p><\/blockquote>\n<p>Based on their <a href=\"http:\/\/www.brookfield.com\/newsroom\/pressreleases\/r2007\/resources\/2007%20Q1%20Financials.pdf\">March 31, 2007, Balance Sheet<\/a>, $600-million is about 10% of common equity. This is not good news for debt-holders or preferred share holders &#8211; whether it is sufficiently bad to warrant a downgrade awaits a detailed analysis by more specialized practitioners than I.<\/p>\n<p>BAM currently has the following preferred share issues outstanding : BAM.PR.B BAM.PR.C BAM.PR.E BAM.PR.G BAM.PR.H BAM.PR.I BAM.PR.J BAM.PR.K BAM.PR.L BAM.PR.M BAM.PR.T and there is a <a href=\"http:\/\/www.prefblog.com\/?p=778\">new perpetual coming out soon<\/a>.<\/p>\n<p><b>Update<\/b>: One source of uncertainty in the meaning of this is the book-value vs. the market-value of the assets spun out. BAM has a <a href=\"http:\/\/www.investor.reuters.wallst.com\/stocks\/Ratios.asp?rpc=66&#038;ticker=BAM\">P\/B ratio of 4.13:1<\/a>. If the assets spun out have a <i>market value<\/i> of $1 and a <i>book value<\/i> of $0.25, then this will be a relatively minor change to the balance sheet.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brookfield Asset Management has announced: Brookfield intends to distribute to its Class A shareholders a direct interest in its infrastructure operations through a newly created publicly traded partnership to be named Brookfield Infrastructure Partners L.P. &hellip;<\/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-819","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/819","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=819"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/819\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}