Brookfield Infrastructure's $250 Million Note Offering Explained
Brookfield Infrastructure Announces $250 Million Note Offering
All amounts are in Canadian dollars unless stated otherwise. Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN) has made a significant financial move by announcing its plan to issue $250 million in aggregate principal amount of Fixed-to-Fixed Reset Rate Subordinated Notes. These Notes are due on September 1, 2055, and are part of a strategy to enhance financial stability and support growth initiatives.
Details of the Subordinated Notes
The upcoming Notes will feature an initial annual interest rate of 5.598% until September 1, 2030. Following this period, the interest rate will adjust every five years based on the Five Year Government of Canada Yield, increased by a margin of 2.713%. However, even with market fluctuations, the rate will not fall below the initial rate of 5.598%, ensuring a solid return for investors. Brookfield Infrastructure plans to utilize the net proceeds from this offering mainly for general corporate purposes, including settling existing debts.
Who Issues the Notes?
The Notes will be offered through Brookfield Infrastructure Finance ULC, an indirect subsidiary of Brookfield Infrastructure. This indirect issuance underscores the company's robust financial structure and commitment to transparency, as it will also be guaranteed on a subordinated basis by Brookfield Infrastructure and several of its subsidiaries.
Investment Opportunities
Investors will have access to these Notes through a syndicate led by prominent financial institutions including CIBC Capital Markets, Scotiabank, TD Securities, BMO Capital Markets, National Bank Financial Markets, and RBC Capital Markets. This collaboration combines expertise from key players in the financial sector, thus strengthening the offering's credibility.
Expectations and Closing Details
The offering is expected to close around May 16, 2025, pending customary closing conditions, further emphasizing Brookfield’s proactive approach in capital management. Enhancing its financial flexibility allows Brookfield Infrastructure to pursue growth opportunities while maintaining its strategic focus.
Where Can Investors Find More Information?
Prospective investors can find the full details in the accompanying base shelf prospectus and related prospectus supplement, which will be available through appropriate channels within two business days of this announcement. It’s crucial for any interested parties to review these documents carefully to understand the nature of the investment fully.
About Brookfield Infrastructure
Brookfield Infrastructure is regarded as a premier global infrastructure firm, owning and managing high-quality, long-life assets across various sectors, such as utilities, transport, midstream, and digital infrastructure throughout the Americas, Asia Pacific, and Europe. Concentrating on assets with contracted and regulated revenues, Brookfield aims to deliver predictable cash flows, promising stability for its investors.
The company is part of Brookfield Asset Management, which has extensive expertise in managing over US$1 trillion in assets, underpinning Brookfield Infrastructure's position in the market. Investors can access Brookfield's infrastructure portfolio through either Brookfield Infrastructure Partners L.P. or Brookfield Infrastructure Corporation (TSX: BIPC).
Contact Information
If you have media inquiries, please contact:
John Hamlin
Director of Communications
Telephone: +44 204 557 4334
Email: john.hamlin@brookfield.com
For investor relations, please reach out to:
Stephen Fukuda
Senior Vice President, Corporate Development & Investor Relations
Telephone: +1 416 956 5129
Email: stephen.fukuda@brookfield.com
Frequently Asked Questions
What are the main features of the subordinated notes?
The subordinated notes have a principal amount of $250 million, an initial interest rate of 5.598%, and will mature on September 1, 2055.
What will the proceeds from the note offering be used for?
The proceeds will be mainly used for general corporate purposes, including the repayment of existing indebtedness.
What is the interest rate structure on the notes?
The interest is fixed at 5.598% until 2030, after which it will be adjusted based on the Five Year Government of Canada Yield.
How can investors access the offering documents?
Investors can access the offering documents on SEDAR+ within two business days of this announcement.
Who guarantees the issuance of the notes?
The notes will be guaranteed on a subordinated basis by Brookfield Infrastructure and certain subsidiaries.
About The Author
Contact Olivia Taylor privately here. Or send an email with ATTN: Olivia Taylor as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.