Overview of Brookfield Infrastructure's ATM Program
All amounts in U.S. dollars
BROOKFIELD, NEWS — Brookfield Infrastructure Corporation (NYSE: BIPC; TSX: BIPC) has officially announced its comprehensive ‘at-the-market’ equity issuance program (the ATM Program), after securing the necessary regulatory filings in both Canada and the United States.
Details of the Equity Issuance
This ATM Program allows Brookfield Infrastructure to potentially offer and sell up to $400 million worth of class A exchangeable subordinate voting shares (referred to as BIPC Shares) directly from their treasury. These shares will be available to the public at prevailing market prices via major stock exchanges, including the Toronto Stock Exchange and the New York Stock Exchange.
Sales prices for the BIPC Shares may fluctuate based on market conditions and will depend on the timing of the share offerings. The flexibility of the ATM Program enables Brookfield to tap into favorable market conditions, allowing them to strategically time their market entries.
Exchange Features and Shareholder Options
Each BIPC Share can be exchanged at the holder’s discretion for one non-voting limited partnership unit (LP Unit) of Brookfield Infrastructure Partners L.P., or for cash equivalent, providing a flexible investment structure.
Use of Proceeds from the Program
The anticipated net proceeds from the ATM Program are to be utilized primarily to support the repurchase of LP Units under the Partnership's normal course issuer bid. This strategic move is aimed at enhancing value for shareholders and underlines Brookfield’s commitment to maintaining a healthy financial structure.
Impact on Shareholder Value
Implementing the ATM Program is considered to be non-dilutive to existing shareholders since the total count of LP Units and BIPC Shares is expected to remain stable, subject to minor fluctuations during the distribution phase. This strategic approach aims to safeguard shareholder interests while facilitating growth opportunities.
Regulatory Framework and Agreements
The equity distribution will take place as per an established agreement among Brookfield Infrastructure, BIPC, and designated agents such as RBC Dominion Securities Inc., and Scotia Capital Inc. Transactions will conform to the guidelines set out in the relevant Canadian and U.S. securities laws, ensuring compliance and investor protection.
Duration of the Program
Brookfield Infrastructure's ATM Program is set to remain active until the earlier of the completion of all share sales under the agreement or February 28, 2027. This time frame allows Brookfield Infrastructure to actively engage with market conditions over a defined period.
About Brookfield Infrastructure
Brookfield Infrastructure is recognized as a leading global entity in infrastructure management, owning and operating premium long-duration assets across critical sectors including utilities, transportation, midstream, and data services. With a focus on revenue stability and predictability, Brookfield seeks to enhance cash flows through contracted and regulated assets.
Investors can choose to engage with Brookfield’s portfolio via Brookfield Infrastructure Partners L.P. or Brookfield Infrastructure Corporation. The firm is a proud member of Brookfield Asset Management, known for its comprehensive global alternative asset management prowess.
Contact Information
If you have inquiries or need further information, feel free to reach out:
Media Inquiries:
John Hamlin
Director, Communications
Tel: +44 204 557 4334
Email: john.hamlin@brookfield.com
Investor Relations:
Stephen Fukuda
Senior Vice President, Corporate Development & Investor Relations
Tel: +1 (416) 956 5129
Email: stephen.fukuda@brookfield.com
Frequently Asked Questions
What is the purpose of the ATM Program announced by Brookfield Infrastructure?
The ATM Program allows Brookfield to sell shares at market prices, providing flexibility for fundraising while ensuring shareholder value is maintained.
How much can Brookfield Infrastructure raise through this program?
Brookfield may raise up to $400 million through the issuance of class A exchangeable subordinate voting shares.
Who can purchase BIPC Shares under the ATM Program?
BIPC Shares will be available for purchase by the general public through established stock exchanges such as NYSE and TSX.
How will the proceeds from the ATM Program be used?
The proceeds will assist in repurchasing LP Units and support general corporate purposes.
What are the expected risks associated with the ATM Program?
As with any market-driven initiative, there are inherent market risks and uncertainties that may impact outcomes as outlined in Brookfield's public filings.
