By Cristal Cody
Chicago, Feb. 2 – Brookfield Finance Inc. sold $800 million of notes in two equal-sized parts (A-), with one part an add-on and one part new green bonds, according to information from a market source and a press release.
Both notes are being guaranteed by Brookfield Asset Management Inc.
The add-on due Jan. 25, 2028 priced with an expected 3.9% coupon at 107.134 to yield 2.553%, or at a spread of Treasuries plus 95 basis points, 25 bps low to talk in the 120 bps area.
The 3.625% green bonds due Feb. 15, 2052 priced with a Treasuries plus 152 bps spread, lower than talk in the 175 bps area.
The 2028 notes will feature a make-whole call until Oct. 25, 2027 and a par call after that. The 2052 notes will have a make-whole call until six months prior to maturity and then a par call.
The notes are putable at 101 upon a change of control. The notes are also callable in the event that certain changes affecting Canadian income taxation occur.
Citigroup Global Markets Inc. and SMBC Nikko Securities America, Inc. are the joint bookrunners.
Proceeds from the 2028 notes will be used for general corporate purposes. Proceeds from the 2052 notes will be used to finance or refinance eligible investments in the categories of green buildings, renewable energy generation, energy efficiency and management and sustainable water and waste management.
Brookfield is an alternative asset manager based in Toronto.
| Issuer: | Brookfield Finance Inc.
|
| Guarantor: | Brookfield Asset Management Inc.
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| Amount: | $800 million
|
| Issue: | Notes
|
| Bookrunners: | Citigroup Global Markets Inc. and SMBC Nikko Securities America, Inc.
|
| Trade date: | Feb. 2
|
| Settlement date: | Feb. 4
|
| Ratings: | S&P: A-
|
| Distribution: | SEC registered, Canada
|
|
|
| Add-on
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| Amount: | $400 million
|
| Issue: | Notes
|
| Maturity: | Jan. 25, 2028
|
| Coupon: | 3.9%
|
| Price: | 107.134
|
| Yield: | 2.553%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call until Oct. 25, 2027; thereafter par call
|
| Change of control: | 101
|
| Price talk: | Treasuries plus 120 bps area
|
| Cusip: | 11271LAC6
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| Original issue: | $650 million of notes issued on Jan. 17, 2018
|
|
|
| Green bonds
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| Amount: | $400 million
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| Issue: | Green bonds
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| Maturity: | Feb. 15, 2052
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| Coupon: | 3.625%
|
| Spread: | Treasuries plus 152 bps
|
| Call features: | Make-whole call until Aug. 15, 2051; par call thereafter
|
| Change of control: | 101
|
| Price talk: | Treasuries plus 175 bps area
|
| Cusip: | 11271LAJ1
|
|
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