Partners Value Split completes $125M (U.S.) offering

Executive Summary

• Partners Value Split Corp. completed a public offering of 5 million Class AA Preferred Shares, Series 17, raising gross proceeds of $125 million USD.
• The shares carry a 5.25% annualized yield with quarterly fixed cumulative preferential dividends and a final maturity date of January 31, 2033.
• Net proceeds will be used to pay distributions to capital share holders, funded by dividends from the company's portfolio of Brookfield Corp. and Brookfield Asset Management Ltd. shares.

Key Details

• Transaction Structure: Public offering of Class AA Preferred Shares, Series 17.
• Quantity Issued: 5,000,000 shares (including 1,000,000 shares issued via the full exercise of the underwriters' option).
• Offering Price: $25.00 USD per share.
• Gross Proceeds: $125,000,000 USD.
• Dividend Terms: Quarterly fixed cumulative preferential dividends representing a 5.25% annualized yield on the offering price.
• Maturity Date: January 31, 2033.
• Listing: Listed and posted for trading on the Toronto Stock Exchange under the symbol PVS.PR.V.
• Use of Proceeds: To make distributions to the holders of the company's capital shares.
• Capital Structure Adjustment: Prior to closing, the company subdivided existing capital shares held by Partners Value Investments Inc. to equalize the number of preferred shares and capital shares outstanding.
• Asset Portfolio: The company owns approximately 179 million Class A limited voting shares of Brookfield Corp. and approximately 25 million Class A limited voting shares of Brookfield Asset Management Ltd.
• Yield Coverage: Expected quarterly dividends from Brookfield holdings are sufficient to finance the quarterly fixed cumulative preferential dividends for preferred share holders and allow capital share holders to participate in capital appreciation.