Brookfield Asset Management plans USD-405m debt securities sale

Sep 5, 2013 - Canadian green power and infrastructure asset manager Brookfield Asset Management Inc (TSE:BAM.A) said yesterday it would issue CAD 425 million (USD 405m/EUR 307m) in debt securities to repay debt.

The debt securities will consist of CAD 300 million in 5.045% medium term notes due March 2024.

The offering will also include CAD 125 million of a re-opening of 5.95% debentures. The placement of these debentures, maturing in June 2035, was originally closed in June 2005. The extra debentures to be issued now will also bear a coupon of 5.95% on the same terms and conditions. However the issue price will be CAD 96.079 plus accrued interest, with an effective yield of 6.282% if held to maturity.

Following the transactions, Brookfield Asset Management will have CAD 425 million in outstanding debentures.

The debt securities were given a Baa2 rating with a stable outlook by Moody's Investors Service, an A- rating with a negative outlook by Standard & Poor's and a BBB rating by Fitch, outlook stable.

CIBC World Markets Inc, HSBC Securities (Canada) Inc and TD Securities Inc are leading the offering.

(CAD 1.0 = USD 0.953/EUR 0.723)

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