By Cristal Cody
Tupelo, Miss., Feb. 1 – BIP Investment Corp. detailed its sale of C$100 million of cumulative minimum rate reset senior preferred shares with a 5.85% dividend for the initial fixed-rate period ending March 31, 2024, according to a term sheet.
The company sold 4 million shares of the preferred stock (S&P: P-2) at C$25.00 per share.
The preferreds will reset March 31, 2024 to a fixed rate equal to the greater of the five-year Government of Canada bond yield plus 396 basis points and 5.85%.
TD Securities Inc., BMO Capital Markets Corp., CIBC World Markets Inc., RBC Capital Markets (Canada) Ltd. and Scotia Capital Inc. were the bookrunners.
The notes are guaranteed by Brookfield Infrastructure Partners, Brookfield Infrastructure LP, Brookfield Infrastructure Holdings (Canada) Inc., Brookfield Infrastructure US Holdings I Corp. and BIP Bermuda Holdings I Ltd.
The preferreds will be listed for trading on the Toronto Stock Exchange.
Proceeds will be used to fund new investments and/or for general working capital purposes.
BIP Investment is a Vancouver, B.C.-based subsidiary of Brookfield Infrastructure.
| Issuer: | BIP Investment Corp.
|
| Guarantor: | Brookfield Infrastructure Partners, Brookfield Infrastructure LP, Brookfield Infrastructure Holdings (Canada) Inc., Brookfield Infrastructure US Holdings I Corp. and BIP Bermuda Holdings I Ltd.
|
| Amount: | C$100 million, 4 million preferred shares
|
| Maturity: | March 31, 2024
|
| Securities: | Series 1 cumulative minimum rate reset senior preferred shares
|
| Bookrunners: | TD Securities Inc., BMO Capital Markets Corp., CIBC World Markets Inc., RBC Capital Markets (Canada) Ltd. and Scotia Capital Inc.
|
| Dividend: | 5.85%; resets March 31, 2024 to fixed rate equal to greater of five-year Government of Canada bond yield plus 396 bps and 5.85%
|
| Price: | C$25.00 per share
|
| Call features: | On and after March 31, 2024 at C$25.00 per share
|
| Pricing date: | Jan. 29
|
| Settlement date: | Feb. 5
|
| Rating: | S&P: P-2
|
| Distribution: | Canada
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