By Devika Patel
Knoxville, Tenn., Oct. 13 - Brookfield Properties Corp. said it arranged an upsized C$300 million public offering of its series P preferred stock via a syndicate of underwriters led by RBC Capital Markets, CIBC, Scotia Capital Inc. and TD Securities Inc.
The deal priced for C$200 million on Wednesday and was increased a few hours later. A C$50 million greenshoe was eliminated.
The company priced the preferreds at C$25.00 apiece.
The preferreds pay a 5.15% cumulative quarterly fixed dividend annually until March 31, 2017. After that, the dividend rate will be reset every five years at a rate equal to the five-year Government of Canada bond yield plus 300 basis points.
Holders may convert their preferreds into series Q cumulative preferred shares on March 31, 2017 and on March 31 every five years thereafter. The series Q preferreds pay cumulative quarterly floating dividends at a rate equal to the 90-day Government of Canada Treasury Bill yield plus 300 bps.
Settlement is expected Oct. 21.
Proceeds will be added to the general funds of Brookfield Office Properties and be used for general corporate purposes.
Brookfield is a Toronto commercial real estate company.
| Issuer: | Brookfield Properties Corp.
|
| Issue: | Series P preferred stock
|
| Amount: | C$300 million
|
| Dividend: | 5.15% until March 31, 2017, then five-year Government of Canada bond yield plus 300 bps
|
| Price: | C$25.00
|
| Warrants: | No
|
| Underwriters: | RBC Capital Markets, CIBC, Scotia Capital Inc. and TD Securities Inc.
|
| Pricing date: | Oct. 13
|
| Settlement date: | Oct. 21
|
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