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Preferred Share Description
Brookfield Asset Management Inc. (BAM.PF.J) **New Issue**
4.75% Cumulative, Redeemable, Fixed Minimum, Rate-Reset Class A Preferred Share, Series 48
Prospectus - September 6, 2017
Marketing Summary - September 6, 2017
DBRS Credit Update: May 22, 2017 - DBRS has today confirmed the long-term, short-term and preferred shares ratings of Brookfield Asset Management Inc. (BAM) and its subsidiaries at A (low), R-1 (low) and Pfd-2 (low), respectively. All trends are Stable.
The confirmations reflect the following factors: (1) improved financial flexibility following the spin-off of Brookfield Business Partners in June 2016; (2) continued growth in funds from operations (FFO) and increasingly predictable Company-level cash flows driven by the growth of the asset management business, which is BAM’s largest cash flow generation segment; and (3) continued expansion of assets under management (AUM) and fee-bearing capital (FBC) through acquisitions and organic growth, which is largely supported by external funds from institutional partners and global investors. DBRS expects Brookfield to continue to generate an increasing proportion of its cash flows from asset management fees that are fixed or based primarily on the size of the committed investors’ capital and distributions from its flagship companies over the medium to long term.
- DBRS Rating
- Pfd-2 (low) Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $1.1875 per share per year
- Dividend Dates
- The last day of June, September, December and March
- Dividend Details
- The share's dividend will never be reset below 4.75%. The dividend rate is initially fixed at $1.1875 per share until December 31, 2022. On December 31, 2022 and on December 31st every 5 years thereafter, the dividend will be reset and fixed to a rate equal to the greater of i) the sum of the 5-Year Government of Canada Yield (GCAN5YR) plus 3.10% and ii) 4.75%.
- The shares are not redeemable by the company prior to December 31, 2022. On December 31, 2022 and on December 31st every 5 years thereafter, the company may, at it's option, redeem the shares for $25.00 each.
- On December 31, 2022 and on December 31st every five years thereafter the holders of the Series 48 Rate-Reset preferred shares will have the option to convert their shares, all or in part, into an equal number of the series 49, Floating-Rate preferred shares. The Floating-Rate preferred shares will calculate and pay a dividend quarterly. The quarterly dividend paid will equal the sum of the 3-month Government of Canada T-Bill Rate plus 3.10%. In addition, holders of the Series 49 Floating-Rate preferred shares have the option to convert their shares into the Series 48, Rate-Reset preferred shares on December 31, 2027 and on December 31st every 5 years thereafter.
- Lead Underwriter(s)
- CIBC Capital Markets, RBC Capital Markets, Scotiabank, and TD Securities Inc
- Transfer Agent
- CIBC Mellon Trust Company
- CIBC Mellon Trust Company
- Dividend Reinvestment Plan
- Not available to preferred shareholders.
- Last Updated