Brookfield Asset Management CEO Bruce FlattFred Lum/The Globe and Mail
Brookfield Asset Management Inc. will issue $150 million of preferred shares to underwriters for distribution to the public, the Toronto-based company announced Tuesday.
Holders of the six million Series 24 preferreds, which will be priced at $25 each, will receive a cumulative quarterly fixed dividend yielding 5.40 per cent annually for the initial period ending June 30, 2016.
After that, the dividend rate will be reset every five years at a rate equal to the five-year Government of Canada bond yield plus 2.30 percentage points.
The Canadian five-year bonds currently yield 2.7 per cent.
Series 24 preferreds will also be convertible into Series 25 preferreds on June 30, 2016, and on the five-year anniversaries after that. The Series 25 preferreds will pay cumulative quarterly floating dividends at a rate equal to the three-month Canada treasury bill yield plus 2.30 percentage points.
Brookfield said it would use proceeds from the financing for its general corporate purposes.