By Devika Patel
Knoxville, Tenn., July 22 – Brookfield Finance Inc. and Brookfield Finance I (UK) plc offered further details, including the spread, price and yield, about a sale of notes in two tranches, including an add-on to its 3.5% guaranteed senior notes due March 30, 2051 (Baa1/A-/A-), according to an FWP filed with the Securities and Exchange Commission.
Brookfield sold $600 million of 2.34% senior green notes due 2032 and $250 million in the tap of the 2051 notes.
The company previously sold $500 million of the 3.5% notes in a sale that priced on Sept. 23, 2020 and settled on Sept. 28, 2020. These notes were priced at 99.313 to yield 3.537%, with a spread of 210 basis points over Treasuries.
The additional notes that priced on Wednesday were sold at 104.59 to yield 3.255% and will be fungible with the original issue. The tap of notes was sold with a spread of Treasuries plus 130 bps.
The new green notes, due 2032, feature a make-whole call until three months prior to maturity and then a par call. These notes priced at par to yield 2.34%, with a spread of Treasuries plus 105 bps.
The 3.5% notes feature a make-whole call at Treasuries plus 35 bps until Sept. 30, 2050, then a par call.
Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Wells Fargo Securities LLC and SMBC Nikko Securities America Inc. are the bookrunners.
Proceeds from the 2032 notes will be used for eligible green projects. Proceeds from the 2051 notes will be used for general corporate purposes.
The notes are guaranteed by parent company Brookfield Asset Management Inc., a Toronto-based alternative asset manager with about $250 billion in assets under management.
| Issuer: | Brookfield Finance I (UK) plc
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| Guarantor: | Brookfield Asset Management Inc.
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| Amount: | $850 million
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| Bookrunners: | Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Wells Fargo Securities LLC and SMBC Nikko Securities America Inc.
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| Co-managers: | Banco Bradesco BBI SA, BNP Paribas Securities Corp., Itau BBA USA Securities Inc., Mizuho Securities USA LLC, MUFG, National Bank of Canada Financial Inc., Natixis Securities Americas LLC, Santander Investment Securities Inc. and SG Americas Securities LLC
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| Trade date: | July 21
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| Settlement date: | July 26
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| Ratings: | Moody’s: Baa1
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| S&P: A-
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| Fitch: A-
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| Distribution: | SEC registered and Canada
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| 2032 green notes
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| Issue: | Green senior notes
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| Amount: | $600 million
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| Maturity: | Jan. 30, 2032
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| Coupon: | 2.34%
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| Price: | Par
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| Yield: | 2.34%
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| Spread: | Treasuries plus 105 bps
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| Call: | Make-whole call at Treasuries plus 20 bps until Oct. 30, 2031, then a par call
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| 2051 notes tap
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| Issue: | Notes
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| Amount: | $250 million add-on
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| Maturity: | March 30, 2051
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| Coupon: | 3.5%
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| Price: | 104.59
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| Yield: | 3.255%
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| Spread: | Treasuries plus 130 bps
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| Call features: | Make-whole call at Treasuries plus 35 bps until Sept. 30, 2050, then par call
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| Original issue: | $500 million of notes issued on Sept. 28, 2020
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