Partners Value Split arranges $75M (U.S.) offering

Executive Summary

• Partners Value Split Corp. announced a $75 million (U.S.) public offering of 3 million Class AA Preferred Shares, Series 16, on a bought deal basis led by a syndicate of major Canadian banks.
• The preferred shares carry a fixed coupon of 5.40% and have a final maturity of March 31, 2032, with a provisional rating of Pfd-2 from DBRS Ltd.
• Net proceeds will be used to make distributions to holders of the company's capital shares, funded by dividends from the company's portfolio of Brookfield Corp. and Brookfield Asset Management shares.

Key Details

• Transaction Structure: Bought deal public offering of Class AA Preferred Shares, Series 16.
• Underwriters: Syndicate led by Scotiabank, BMO Capital Markets, CIBC Capital Markets, RBC Capital Markets, and TD Securities Inc.
• Pricing: $25.00 (U.S.) per share.
• Gross Proceeds: $75,000,000 (U.S.) for the base offering.
• Over-Allotment Option: Underwriters granted an option to purchase up to an additional 1,000,000 Series 16 preferred shares at the same price, potentially increasing gross proceeds to $100,000,000 (U.S.).
• Coupon Rate: Fixed 5.40% per annum.
• Maturity Date: March 31, 2032.
• Credit Rating: Provisional Pfd-2 from DBRS Ltd.
• Use of Proceeds: To make distributions to holders of the company's capital shares.
• Closing Date: Expected on or about September 11, 2025.
• Portfolio Assets: The company holds approximately 120 million Class A limited voting shares of Brookfield Corp. and approximately 30 million Class A limited voting shares of Brookfield Asset Management Ltd.
• Dividend Coverage: Expected quarterly dividends from the Brookfield portfolio are sufficient to finance the quarterly fixed cumulative preferential dividends for the preferred shares and allow capital share holders to participate in capital appreciation.