Published on 2/18/2020 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: Brookfield Finance sells $600 million 3.45% 30-year notes at 150 bps over Treasuries
By Cristal Cody
Tupelo, Miss., Feb. 18 – Brookfield Finance Inc. sold $600 million of 3.45% senior notes due April 15, 2050 (Baa1/A-/A-/A (low)) on Tuesday at a spread of 150 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.058 to yield 3.501%.
Initial price talk was at the Treasuries plus 165 bps area.
Deutsche Bank Securities Inc., BofA Securities, Inc. and SMBC Nikko Securities America Inc. were the bookrunners.
Proceeds will be used to redeem all of the company’s C$350 million of 5.3% notes due March 1, 2021 and for general corporate purposes.
The notes will be guaranteed by Brookfield Asset Management Inc., a Toronto-based alternative asset manager with about $250 billion in assets under management.
| Issuer: | Brookfield Finance Inc.
|
| Guarantor: | Brookfield Asset Management Inc.
|
| Amount: | $600 million
|
| Description: | Senior notes
|
| Maturity: | April 15, 2050
|
| Bookrunners: | Deutsche Bank Securities Inc., BofA Securities, Inc. and SMBC Nikko Securities America Inc.
|
| Co-managers: | Banco Bradesco BBI SA, BNP Paribas Securities Corp., Itau BBA USA Securities, Inc., Mizuho Securities USA Inc., MUFG, Natixis Securities Americas LLC, Santander Investment Securities Inc. and SG Americas Securities, LLC
|
| Coupon: | 3.45%
|
| Price: | 99.058
|
| Yield: | 3.501%
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Oct. 15, 2049; par call thereafter
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 18
|
| Settlement date: | Feb. 21
|
| Ratings: | Moody’s: Baa1
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| S&P: A-
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| Fitch: A-
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| DBRS: A-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 165 bps area
|
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