By Cristal Cody
Prospect News, Sept. 5 - Brookfield Office Properties Inc. said on Wednesday that it sold C$200 million of cumulative class AAA rate reset preference shares to yield 4.6% annually for the initial period ending Dec. 31, 2018.
Brookfield Office Properties sold 8 million shares of the series T preferred stock (/BB+/P-3/DBRS: Pfd-3) at C$25.00 per share.
CIBC World Markets Inc., RBC Capital Markets Corp., Scotia Capital Inc. and TD Securities Inc. were the lead managers.
The deal includes an option to upsize by an additional C$50 million, or 2 million shares.
The preferred shares will be listed on the Toronto Stock Exchange.
After the initial maturity, the dividend rate will be reset every five years at a rate equal to the five-year Government of Canada bond yield plus 316 bps.
Holders of the shares will have the right, at their option, to convert their shares into series U cumulative class AAA preference shares on Dec. 31, 2018 and on Dec. 31 every five years thereafter. The series U shares will yield cumulative quarterly floating dividends at a rate equal to the 90-day Government of Canada treasury bill yield plus 316 bps.
Proceeds from the offering will be used to redeem Brookfield Office Properties' 6% series F cumulative class AAA preference shares and for general corporate purposes.
Toronto-based Brookfield is a Canadian real estate investment trust that owns, develops and manages office properties in the United States, Canada and Australia.
| Issuer: | Brookfield Office Properties Inc.
|
| Amount: | C$200 million
|
| Greenshoe: | C$50 million
|
| Maturity: | Dec. 31, 2018
|
| Securities: | Cumulative class AAA rate reset preference shares
|
| Bookrunners: | CIBC World Markets Inc., RBC Capital Markets Corp., Scotia Capital Inc., TD Securities Inc.
|
| Dividend: | 4.6%
|
| Price: | C$25.00 per share
|
| Yield: | 4.6%
|
| Pricing date: | Sept. 5
|
| Settlement date: | Sept. 13
|
| Ratings: | Standard & Poor's: BB+/P-3
|
| DBRS: Pfd-3
|
| Distribution: | Canada
|
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