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Preferred Share Description
BIP Investment Corporation (BIK.PR.A ) ** New Issue**
5.85% Cumulative, Redeemable, Retractable, Fixed Minimum Rate-Reset, Senior Preferred Share, Series 1
Prospectus - January 29, 2019
Marketing Summary: January 29, 2019
DBRS Credit Rating: At present, Dominion Bond Rating Services does not have a credit rating for BIP Investment Corporation or Brookfield Infrastructure Partners L.P. shares.
Corporate Note: These shares will be issued by BIP Investment Corporation (BIPIC), a wholly-owned subsidiary of Brookfield Infrastructure Partners L.P. (TSX:BIP.UN), and the shares will be fully and unconditionally guaranteed by Brookfield Infrastructure Partners L.P. and certain of its key holding subsidiaries.
Trading Note: The shares are expected to begin trading on the TSX on or about February 5, 2019
- DBRS Rating
- These shares do not have a credit rating assigned to them
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $1.4625 Per share per year
- Dividend Dates
- Dividends are payable on the last day of March, June, September and December
- Dividend Details
- The Series 1 shares' annual dividends are fixed until March 31, 2024. Holders of the Series 1 Shares will be entitled to receive a cumulative quarterly fixed dividend at a rate of 5.85% annually for the initial period ending March 31, 2024. Thereafter, the annual dividend rate will be reset every five years at a rate equal to the greater of: (i) the 5-year Government of Canada bond yield plus 3.96%, and (ii) 5.85%.
- The Series 1 shares are not redeemable before March 31, 2024. On March 31, 2024 and on March 31st every five years thereafter the company can redeem the shares at $25.00 per share.
- Holders of the Series 1 shares will have the right, at their option, to convert their Series 1 shares into an equal number of Series 2 Floating Rate shares on March 31, 2024 and on March 31 every five years thereafter. Holders of Series 2 Floating Rate shares will be entitled to receive a cumulative quarterly floating dividend at a rate equal to the 90-day Canadian Treasury Bill yield plus 3.96%. In addition, on March 31, 2029 and on March 31st every 5 years thereafter, holders of the Series 2 Floating Rate shares have the option to convert their shares into an equal number of the Series 1 Fixed Rate Reset shares.
- The Series 1 shares may be surrendered for retraction at any time. 1) Retraction payments for Series 1 shares will be made on or before the 15th day of each month provided the Series 1 shares have been surrendered for retraction at least 5 business days before the last business day of the preceding month. 2) The “Series 1 Retraction Price” will be equal to the lesser of (i) 95% of the volume weighted average price of the Series 1 shares on the TSX exchange for the 3 business days ending on the applicable Deposit Date and (ii) $23.75 per share.
- Lead Underwriter(s)
- TD Securities Inc., BMO Capital Markets, CIBC Capital Markets, RBC Capital Markets and Scotiabank
- Transfer Agent
- Computershare Investor Services Inc.
- Computershare Investor Services Inc.
- Dividend Reinvestment Plan
- Unknown at this time
- Corporate Action
- BIP Investment Corporation (BIPIC), a wholly-owned subsidiary of Brookfield Infrastructure Partners L.P. (TSX:BIP.UN). BIP Investment Corporation was established on August 31, 2018 under the Business Corporations Act (British Columbia). It will operate principally for the purpose of issuing Preference Shares and serve as an investment holding company. BIPIC’s principal investments will initially consist of indirect interests in (i) Enercare Inc., which was acquired by the Partnership and its institutional partners on October 16, 2018; and (ii) the Western Canadian natural gas gathering and processing business of Enbridge Inc., the provincially regulated portion of which was acquired by the Partnership and its institutional partners on October 1, 2018 with the federally regulated portion to be acquired mid-2019. The Canadian Midstream Business includes natural gas processing facilities and gathering pipelines with connectivity to markets in the United States and Canada. Enercare is a provider of residential energy infrastructure, such as water heaters, heating, ventilation, air conditioning systems and other home services across Canada and the United States.
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