Press release from Marketwire
Brookfield Asset Management Announces Reset Dividend Rate on Its Series 9 Preferred Shares
Tuesday, October 11, 2011
TORONTO, ONTARIO--(Marketwire - Oct. 11, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATES
Brookfield Asset Management Inc. (TSX:BAM)(NYSE:BAM)(EURONEXT:BAMA) today announced that the dividend rate on its Class A Preference Shares, Series 9 (the "Series 9 Preferred Shares") (TSX:BAM.PR.G) for the five years commencing November 1, 2011 and ending October 31, 2016 will be 3.80% per annum. This dividend rate represents 239% of the interpolated yield, calculated as of October 11, 2011 at 10:00 a.m. (Toronto time), on the 2.75% Government of Canada bond due September 1, 2016 and the 4.00% Government of Canada bond due June 1, 2017. This dividend will be payable quarterly on the first day of February, May, August and November, commencing with the dividend payable on February 1, 2012.
The annual rate currently paid on the company's Series 9 Preferred Shares is 4.35%. The final quarterly dividend payable at this rate will be paid on November 1, 2011 to shareholders of record on October 15, 2011.
Holders of Brookfield's Series 9 Preferred Shares have the privilege to convert, at their option, all or part of their Series 9 Preferred Shares on a one-for-one basis into the company's Class A Preference Shares, Series 8 (the "Series 8 Preferred Shares") (TSX:BAM.PR.E) effective November 1, 2011. The deadline for exercising this conversion privilege is 5:00 p.m. (Toronto time) on October 18, 2011. Holders of the Series 9 Preferred Shares who do not elect to convert their shares by this date will retain their Series 9 Preferred Shares and will receive the reset fixed-rate dividend as described above.
Holders of Brookfield's Series 8 Preferred Shares also have the privilege to convert, at their option, all or part of their Series 8 Preferred Shares on a one-for-one basis into the company's Series 9 Preferred Shares effective November 1, 2011. The deadline for exercising this conversion privilege is 5:00 p.m. (Toronto time) on October 18, 2011. Holders of the Series 8 Preferred Shares who do not elect to convert their shares by this date will retain their Series 8 Preferred Shares and will continue to receive a floating-rate dividend based on the prime rate.
If, after the close of business on October 18, 2011, the company determines that there would be fewer than 500,000 Series 9 Preferred Shares outstanding after the conversion date, it will automatically convert all of the remaining shares of this issue into Series 8 Preferred Shares and return all Series 8 Preferred Shares submitted for conversion. Similarly if, after the close of business on October 18, 2011, the company determines that there would be fewer than 500,000 Series 8 Preferred Shares outstanding after the conversion date, it will automatically convert all of the remaining shares of this issue into Series 9 Preferred Shares and return all Series 9 Preferred Shares submitted for conversion.
Holders of the company's Series 8 and Series 9 Preferred Shares will again have the opportunity to convert their shares into the other series on November 1, 2016 and every five years thereafter. The Series 8 and Series 9 Preferred Shares may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements under the U.S. Securities Act.
Brookfield Asset Management Inc. is a global alternative asset manager with approximately $150 billion in assets under management. We have over a 100-year history of owning and operating assets with a focus on real estate, infrastructure, power and private equity. We have a range of public and private investment products and services, which leverage our expertise and experience and provide us with a distinct competitive advantage in the markets where we operate. Brookfield is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and on NYSE Euronext under the symbol BAMA. For more information, please visit our web site at www.brookfield.com.
Note: This press release contains forward-looking information within the meaning of Canadian provincial securities laws and other "forward looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. The words "proposed", "believe", conditional verbs such as "will" and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking statements. Forward-looking information in this news release includes statements with regards to the conversion of the Series 8 and Series 9 Preferred Shares. Although Brookfield believes that the anticipated future results or achievements expressed or implied by the forward-looking statements and information is based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include: general economic conditions; interest rate changes; availability of equity and debt financing; the performance of the company's shares or the stock exchanges generally; and other risks and factors described from time to time in the documents filed by the company with the securities regulators in Canada and the United States including in Management's Discussion and Analysis under the heading "Business Strategy, Environment and Risks". The company undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
Andrew Willis Media: Brookfield Asset Management Inc. SVP, Communications & Media (416) 369-8236 (416) 363-2856 (FAX) email@example.com
Katherine Vyse Investors: Brookfield Asset Management Inc. SVP, Investor Relations (416) 369-8246 (416) 363-2856 (FAX) firstname.lastname@example.org www.brookfield.com