Brookfield Corporation Announces Pricing of $450 Million Notes Due 2035 and $200 Million Re-Opening of Notes Due 2054
Rhea-AI Summary
Brookfield (BN) announced the pricing of a $450 million public offering of senior notes due 2035, with an interest rate of 5.675% per annum. Additionally, the company is reopening $200 million of its 5.968% notes due 2054, increasing the aggregate principal amount to $950 million. The 2054 notes will be issued at 101.435% of their face value with an effective yield of 5.864% if held to maturity. Proceeds will be used for general corporate purposes. The offering is set to close on June 21, 2024, pending customary conditions. The notes will be issued by Brookfield Finance, fully guaranteed by Brookfield, and offered under existing base shelf prospectuses in the US and Canada.
Positive
- $650 million total raised from new and reopened notes.
- 2035 notes offer a fixed interest rate of 5.675% per annum.
- 2054 notes issued at a premium of 101.435% of face value.
- Effective yield of the 2054 notes is 5.864% if held to maturity.
- Proceeds to be used for general corporate purposes.
- Notes fully and unconditionally guaranteed by Brookfield.
Negative
- Increased debt burden of $650 million.
- Interest payments will add to the company’s financial obligations.
- Market conditions may impact the effective yield of the issued notes.
News Market Reaction
On the day this news was published, BN gained 0.71%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
BROOKFIELD, NEWS, June 17, 2024 (GLOBE NEWSWIRE) -- Brookfield Corporation (“Brookfield”) (NYSE: BN, TSX: BN) today announced the pricing of a public offering of
The 2054 notes will form part of the same series as the already outstanding US
The notes will be issued by Brookfield Finance Inc., an indirect
The notes are being offered under Brookfield and the issuer’s existing base shelf prospectus filed in the United States and Canada. In the United States, the notes are being offered pursuant to an effective registration statement on Forms F-10 and F-3 filed by Brookfield and the issuer with the U.S. Securities and Exchange Commission (File No. 333-279601). The offering is being made only by means of a prospectus supplement relating to the offering of the notes. You may obtain these documents for free on EDGAR at www.sec.gov/edgar or on SEDAR+ at www.sedarplus.ca. Before you invest, you should read these documents and other public filings by Brookfield for more complete information about Brookfield and this offering.
Alternatively, copies can be obtained from:
| Deutsche Bank Securities Inc. 1 Columbus Circle New York, NY 10019 Attn.: Prospectus Group Telephone: 1-800-503-4611 Email: prospectus.CPDG@db.com | BofA Securities, Inc. NC1-022-02-25 201 North Tryon Street Charlotte, NC 28255-0001 Attn: Prospectus Department Telephone: 1-800-294-1322 Email: dg.prospectus_requests@bofa.com |
This news release does not constitute an offer to sell or the solicitation of an offer to buy the notes described herein, nor shall there be any sale of these notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The notes being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the base shelf prospectus or the prospectus supplement.
About Brookfield Corporation
Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Alternative Asset Management, Wealth Solutions, and our Operating Businesses which are in renewable power, infrastructure, business and industrial services, and real estate.
We have a track record of delivering
Please note that Brookfield Corporation’s previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR+ and can also be found in the investor section of its website at www.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.
For more information, please contact:
| Media: | Investor Relations: |
| Kerrie McHugh | Linda Northwood |
| Tel: (212) 618-3469 | Tel: (416) 359-8647 |
| Email:kerrie.mchugh@brookfield.com | Email:linda.northwood@brookfield.com |
Forward-Looking Statements
This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward-looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions and which are in turn based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of Brookfield are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “estimate”, “goal”, “intend”, “plan”, “seek”, “strive”, “will”, “may” and “should” and similar expressions. In particular, the forward-looking statements contained in this news release include statements referring to the offering, the use of proceeds from the offering and the expected closing date of the offering.
Although Brookfield believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, certain factors, risks and uncertainties, which are described from time to time in our documents filed with the securities regulators in Canada and the United States, not presently known to Brookfield, or that Brookfield currently believes are not material, could cause actual results to differ materially from those contemplated or implied by forward-looking statements.
Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release. Except as required by law, Brookfield undertakes no obligation to publicly update or revise any forward-looking statements, whether written or oral, that may be as a result of new information, future events or otherwise.
FAQ
What is the total amount raised by Brookfield with the notes offering?
What is the interest rate for Brookfield's 2035 notes?
What is the effective yield of the 2054 notes re-opening?
When is the closing date for Brookfield's notes offering?
What will Brookfield use the proceeds from the notes offering for?
