Brookfield Properties Corp. will issue $200-million of preferred shares to an underwriting syndicate and use the proceeds for its real estate business, the company announced Wednesday.
The New York-headquartered company, a publicly traded subsidiary of Brookfield Asset Management Inc. of Toronto, said it would issue the preferred shares at $25 each.
The Series P preferreds will pay dividends at a fixed annual rate of 5.15 per cent, paid in quarterly instalments, for the initial period ending March 31, 2017. The rate will be reset every five years after that.
An option exists for the underwriters, led by RBC Dominion Securities, CIBC, Scotia Capital Inc. and TD Securities Inc., to buy another two million preferred shares to boost total proceeds to $250-million, it added.
The proceeds will add to the funds of its office properties division and Brookfield said it would also use some for general corporate expenses.
The offering is expected to close around Oct. 21.