Brookfield Infrastructure Completes Subordinated Note Offering
All amounts in U.S. dollars.
BROOKFIELD, News — Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN) has successfully concluded a public offering, raising $300 million through the issuance of Fixed-to-Fixed Reset Rate Subordinated Notes, which are due on March 15, 2055.
Details of the Subordinated Notes
The newly issued notes will carry an interest rate of 6.750% until March 15, 2030. Post that date, the interest will be recalibrated every five years according to the five-year U.S. treasury rate, supplemented by a spread of 2.453%. Importantly, the interest won't fall below 6.750% throughout those resets. Brookfield plans to utilize the proceeds from this offering primarily to refinance existing debt and cover general corporate expenses.
Who is Behind This Offering?
The notes were issued by Brookfield Infrastructure Finance ULC, which is a wholly-owned subsidiary of Brookfield Infrastructure. They also carry guarantees on a subordinated basis from Brookfield Infrastructure and specific subsidiaries.
Several notable financial institutions played a pivotal role in this offering. BofA Securities, Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, among others, served as joint book-running managers, facilitating the successful completion of this operation.
About Brookfield Infrastructure
Brookfield Infrastructure stands out as a premier global infrastructure company specializing in the ownership and operation of high-quality, sustainable assets in diverse sectors, including utilities, transport, midstream, and data across the Americas, Asia Pacific, and Europe. Their strategic focus on assets that guarantee contracted and regulated revenues enables them to maintain predictable and steady cash flows.
Investors can engage with Brookfield Infrastructure through two avenues: either through Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN), a Bermuda-based partnership, or via the Brookfield Infrastructure Corporation (NYSE, TSX: BIPC), a Canadian corporation.
Company’s Leadership and Communication
Brookfield Infrastructure serves as the flagship listed infrastructure entity of Brookfield Asset Management, which boasts over $1 trillion in assets under management, firmly establishing their prominence in the alternative asset management landscape.
Contact Information
If you need to reach out for media inquiries, Simon Maine, the Managing Director of Corporate Communications, can be contacted at +44 739 890 9278 or via email at simon.maine@brookfield.com.
For investor relations, Stephen Fukuda, Senior Vice President of Corporate Development and Investor Relations, is available at +1 (416) 956 5129 or stephen.fukuda@brookfield.com.
Frequently Asked Questions
1. What is the purpose of Brookfield's subordinated notes offering?
The proceeds are intended for refinancing existing debt and general corporate purposes.
2. What is the interest rate associated with the new notes?
The notes will initially bear an annual interest rate of 6.750% until March 15, 2030.
3. Who manages the issuance of these subordinated notes?
The offering was managed by several firms, including BofA Securities and Mizuho Securities.
4. How does Brookfield Infrastructure generate revenue?
The company focuses on assets that provide contracted and regulated revenues, ensuring stable cash flows.
5. What are the potential benefits of Brookfield's strategic financial decisions?
Refinancing can decrease debt servicing costs and improve financial stability, setting the stage for potential growth.
