Brookfield Corporation Announces Pricing of $700 Million Subordinated Notes Due 2055
Brookfield (NYSE: BN, TSX: BN) has announced the pricing of a $700 million public offering of subordinated notes due 2055. The notes will carry a 6.300% annual interest rate until January 15, 2035, after which the rate will be reset every five years based on the five-year U.S. treasury rate plus a 2.076% spread, with a minimum rate of 6.300%.
The notes will be issued by Brookfield Finance Inc., a wholly-owned subsidiary, and will be fully guaranteed by Brookfield The offering is expected to close on December 17, 2024, with proceeds intended for general corporate purposes.
Brookfield (NYSE: BN, TSX: BN) ha annunciato il prezzo di un'offerta pubblica di note subordinate per un totale di 700 milioni di dollari con scadenza nel 2055. Le note porteranno un tasso d'interesse annuale del 6.300% fino al 15 gennaio 2035, dopo di che il tasso sarà rivalutato ogni cinque anni in base al tasso dei titoli di stato americani a cinque anni più uno spread del 2.076%, con un tasso minimo del 6.300%.
Le note saranno emesse da Brookfield Finance Inc., una filiale interamente controllata, e saranno completamente garantite da Brookfield. Si prevede che l'offerta si chiuda il 17 dicembre 2024, con i proventi destinati a scopi aziendali generali.
Brookfield (NYSE: BN, TSX: BN) ha anunciado el precio de una oferta pública de notas subordinadas por un total de 700 millones de dólares con vencimiento en 2055. Las notas tendrán un tasa de interés anual del 6.300% hasta el 15 de enero de 2035, después de lo cual la tasa se reajustará cada cinco años basado en el rendimiento de los bonos del tesoro estadounidense a cinco años más un diferencial del 2.076%, con una tasa mínima del 6.300%.
Las notas serán emitidas por Brookfield Finance Inc., una subsidiaria de propiedad total, y estarán totalmente garantizadas por Brookfield. Se espera que la oferta se cierre el 17 de diciembre de 2024, con los ingresos destinados a fines corporativos generales.
브룩필드 (NYSE: BN, TSX: BN)는 2055년 만기의 7억 달러 규모의 서브오디네이티드 노트 공모가 확정되었다고 발표했습니다. 이 노트는 2035년 1월 15일까지 연 6.300%의 이자율을 적용받으며, 이후 5년마다 5년 만기 미국 국채 금리에 2.076%의 스프레드를 더한 금리가 적용됩니다. 최소 금리는 6.300%입니다.
노트는 브룩필드 파이낸스 Inc.에 의해 발행되며, 브룩필드가 전적으로 보증합니다. 이 공모는 2024년 12월 17일에 마감될 예정이며, 수익금은 일반 기업 용도로 사용될 예정입니다.
Brookfield (NYSE: BN, TSX: BN) a annoncé le prix d'une offre publique de 700 millions de dollars de titres subordonnés arrivant à échéance en 2055. Les titres porteront un taux d'intérêt annuel de 6,300% jusqu'au 15 janvier 2035, après quoi le taux sera révisé tous les cinq ans en fonction du taux des obligations d'État américaines à cinq ans, plus un écart de 2,076%, avec un taux minimum de 6,300%.
Les titres seront émis par Brookfield Finance Inc., une filiale à 100%, et seront entièrement garantis par Brookfield. L'offre devrait se clôturer le 17 décembre 2024, les produits étant destinés à des fins générales d'entreprise.
Brookfield (NYSE: BN, TSX: BN) hat den Preis für ein öffentliches Angebot von nachrangigen Anleihen in Höhe von 700 Millionen US-Dollar mit Fälligkeit im Jahr 2055 bekannt gegeben. Die Anleihen werden bis zum 15. Januar 2035 eine Jahreszinsrate von 6,300% tragen, danach wird der Zinssatz alle fünf Jahre basierend auf dem fünfjährigen US-Staatsanleihezins zuzüglich einer Spanne von 2,076% angepasst, mit einem Mindestzins von 6,300%.
Die Anleihen werden von Brookfield Finance Inc., einer hundertprozentigen Tochtergesellschaft, ausgegeben und sind vollständig von Brookfield garantiert. Das Angebot wird voraussichtlich am 17. Dezember 2024 abgeschlossen, wobei die Erlöse für allgemeine Unternehmenszwecke vorgesehen sind.
- Successful pricing of $700 million notes offering, strengthening capital structure
- Guaranteed minimum interest rate of 6.300% provides predictable cost of capital
- Additional long-term debt obligation increases company's leverage
- Higher interest rate environment results in relatively expensive borrowing costs at 6.300%
Insights
Brookfield's new
The subordinated nature of these notes indicates they sit lower in the capital structure, explaining the attractive yield premium over senior debt. This offering strengthens Brookfield's capital structure and provides additional financial flexibility for their operations. The 30-year maturity aligns well with Brookfield's long-term investment horizon and asset management business model.
The timing of this issuance appears strategic, capitalizing on the current interest rate environment before potential changes in monetary policy. The inclusion of a rate floor demonstrates prudent risk management, protecting investors from extreme low-rate scenarios while maintaining yield optimization potential.
This debt offering reflects Brookfield's strong market position and ability to access capital markets efficiently. The pricing terms are competitive given current market conditions and the hybrid structure of the notes - combining fixed and floating elements - should appeal to institutional investors seeking long-duration assets with some rate protection.
The use of proceeds for "general corporate purposes" provides Brookfield with strategic flexibility to pursue opportunities across their various business segments. Given their track record of disciplined capital allocation, this additional liquidity could be particularly valuable in the current market environment where distressed assets and opportunistic investments may become available.
BROOKFIELD, NEWS, Dec. 10, 2024 (GLOBE NEWSWIRE) -- Brookfield Corporation (“Brookfield”) (NYSE: BN, TSX: BN) today announced the pricing of a public offering of
The notes will bear interest at an annual rate of
The notes will be issued by Brookfield Finance Inc., an indirect
The notes are being offered under Brookfield and the issuer’s existing base shelf prospectus filed in the United States and Canada. In the United States, the notes are being offered pursuant to an effective registration statement on Form F-10 by Brookfield and the issuer with the U.S. Securities and Exchange Commission (File No. 333-279601). The offering is being made only by means of a prospectus supplement relating to the offering of the notes. You may obtain these documents for free on EDGAR at www.sec.gov/edgar or on SEDAR+ at www.sedarplus.ca. Before you invest, you should read these documents and other public filings by Brookfield for more complete information about Brookfield and this offering.
Alternatively, copies can be obtained from:
| BofA Securities, Inc. NC1-022-02-25 201 North Tryon Street Charlotte, NC 28255-0001 Attn: Prospectus Department Telephone: 1-800-294-1322 Email: dg.prospectus_requests@bofa.com | Citigroup Global Markets Inc. c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717 Telephone: 1-800-831-9146 Email: prospectus@citi.com |
This news release does not constitute an offer to sell or the solicitation of an offer to buy the notes described herein, nor shall there be any sale of these notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The notes being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the base shelf prospectus or the prospectus supplement.
About Brookfield Corporation
Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Alternative Asset Management, Wealth Solutions, and our Operating Businesses which are in renewable power, infrastructure, business and industrial services, and real estate.
We have a track record of delivering
For more information, please visit our website at www.bn.brookfield.com or contact:
| Media: | Investor Relations: |
| Kerrie McHugh | Linda Northwood |
| Tel: (212) 618-3469 | Tel: (416) 359-8647 |
| Email: kerrie.mchugh@brookfield.com | Email: linda.northwood@brookfield.com |
Forward-Looking Statements
This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions and which are in turn based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of Brookfield are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may” and “should” and similar expressions. In particular, the forward-looking statements contained in this news release include statements referring to the offering, the use of proceeds from the offering and the expected closing date of the offering.
Although Brookfield believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, certain factors, risks and uncertainties, which are described from time to time in our documents filed with the securities regulators in Canada and the United States, not presently known to Brookfield, or that Brookfield currently believes are not material, could cause actual results to differ materially from those contemplated or implied by forward-looking statements.
Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release. Except as required by law, Brookfield undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, that may be as a result of new information, future events or otherwise.
FAQ
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