Brookfield to issue $200M pref shares, redeem $200M

Executive Summary

• Brookfield Corporation is issuing 8 million Class A preference shares, Series 54, in a bought-deal offering to raise C$200 million in gross proceeds.
• The company intends to use the net proceeds to redeem a minimum of C$200 million of its outstanding Class A preference shares, Series 44, on December 31, 2025.
• The underwriters have been granted an option to purchase up to an additional 2 million shares, which would increase the total gross proceeds to C$250 million.

Key Details

• Security Issued: 8 million Class A preference shares, Series 54.
• Offering Price: $25.00 per share.
• Gross Proceeds: C$200 million (base); up to C$250 million if the over-allotment option is exercised in full.
• Dividend Terms (Series 54): Cumulative quarterly fixed dividend yielding 5.65% annually for the initial period ending December 31, 2030. Thereafter, 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: Redemption of a minimum of C$200 million of outstanding Class A preference shares, Series 44.
• Redemption Details (Series 44):
  • Redemption Date: December 31, 2025.
  • Redemption Price: $25.00 per share.
  • If the option is exercised in full, all Series 44 shares will be redeemed.
  • Record Date for Dividend: December 15, 2025.
  • Dividend Amount: 31.25 cents per share, payable on December 31, 2025.
• Underwriters: Scotiabank, BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., RBC Capital Markets, and TD Securities Inc.
• Over-Allotment Option: Option to purchase up to 2 million additional Series 54 shares, exercisable until 48 hours prior to closing.
• Closing Date: Expected on or about November 26, 2025.
• Jurisdiction: Offered in all provinces of Canada via a supplement to the existing short form base shelf prospectus dated May 31, 2024. Not offered in the United States.