Brookfield Asset New Issue : Perp, 4.75%

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      2012-01-31      2013-01-30  26.000000
  • Redemption      2013-01-31      2014-01-30  25.750000
  • Redemption      2014-01-31      2015-01-30  25.500000
  • Redemption      2015-01-31      2016-01-30  25.250000
  • Redemption      2016-01-31   INFINITE DATE  25.000000

Initial reaction:

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.

Comparison using “Taxable Curve”
Component of Curve Price BAM.PR.? WN.PR.E
Price due to base-rate 24.03 24.14
Price due to short-term 0.09 0.09
Price due to long-term 0.46 0.49
Price to to Cumulative Dividends 0.05 0.05
Price due to Credit Spread (2) -0.48 -0.52
Price due to Credit Spread (Low) -0.48 -0.52
Price due to error 0.00 0.06
Intrinsic Value 23.67 23.79
Price due to Liquidity 1.49? 1.49
Curve Price 25.16 25.28

This entry was posted on Thursday, November 9th, 2006 at 12:02 pm and is filed under New Issues. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Brookfield Asset New Issue : Perp, 4.75%”

  1. PrefBlog » Blog Archive » BAM.PR.M Disappoints on Opening says:
    November 20, 2006 at 9:08 pm

    […] The Brookfield new issue closed today and dropped to a closing quotation of $24.59-60 on heavy volume of 395,480 shares. […]

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