Brookfield closes $250-million offering of preferreds

Executive Summary

• Brookfield Corp. has completed the issuance of $250 million in Class A preference shares, Series 54, priced at $25 per share.
• The net proceeds from this offering are designated to redeem all outstanding cumulative Class A preference shares, Series 44, on December 31, 2025.
• The new Series 54 shares carry a cumulative quarterly fixed dividend yield of 5.65% annually through December 31, 2030, with a reset mechanism thereafter.

Key Details

• Transaction Structure: Bought deal underwritten by a syndicate led by Scotiabank, BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., RBC Capital Markets, and TD Securities Inc.
• Volume and Price: 10 million preferred shares issued at $25 per share.
• Gross Proceeds: $250 million.
• Underwriter Option: The issuance included 2 million shares issued pursuant to the full exercise of the underwriters' over-allotment option.
• Dividend Terms (Series 54):
  • Cumulative quarterly fixed dividend.
  • Yield: 5.65% annually for the initial period ending December 31, 2030.
  • Reset Mechanism: After Dec 31, 2030, the rate resets every five years to the greater of (i) the five-year Government of Canada bond yield plus 2.80%, or (ii) 5.65%.
• Use of Proceeds: To redeem all outstanding cumulative Class A preference shares, Series 44, for cash on December 31, 2025.
• Redemption Details (Series 44):
  • Redemption Price: $25 per share.
  • Record Date for Redemption Dividend: December 15, 2025.
  • Dividend Payable: Previously declared quarterly dividend of 31.25 cents per share, payable on December 31, 2025.
• Trading Information: Commenced trading on the Toronto Stock Exchange under the ticker symbol BN.PF.M.
• Restrictions: Shares may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption.