Aug 24, 2012 - Canadian green power and infrastructure asset manager Brookfield Asset Management Inc (TSE:BAM.A) yesterday unveiled a preferred stock offering targeting gross proceeds of CAD 200 million (USD 201m/EUR 160m).
The company intends to use the raised amount to redeem its class A preference shares, series 11 and for general corporate purposes.
Brookfield will sell eight million class A preferred shares, series 34 on a bought deal basis, with each share priced at CAD 25. Holders of the stock will get a cumulative quarterly fixed dividend yielding 4.2% per year by the end of March 2019. After that, the dividend rate will be adjusted every five years to the 5-year Government of Canada bond yield plus 2.63%.
The syndicate of underwriters is led by TD Securities Inc, Canadian Imperial Bank of Commerce (TSE:CM), RBC Capital Markets and Scotia Capital Inc.
Brookfield has also provided an over-allotment option of up to two million additional preferred shares to boost the proceeds to CAD 250 million. The option can be exercised up to 48 hours before closing, it said.
The offering is expected to wrap up on September 12.
(CAD 1 = USD 1.007/EUR 0.802)
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