Brookfield Infrastructure Partners will issue $250 million in subordinated notes, use proceeds for corporate purposes, closing expected May 16, 2025.
Quiver AI Summary
Brookfield Infrastructure Partners L.P. announced the issuance of $250 million in Fixed-to-Fixed Reset Rate Subordinated Notes, due September 1, 2055, with an initial interest rate of 5.598% for the first five years. The interest will then reset every five years based on the Government of Canada yield plus a spread, with a minimum rate of 5.598%. The proceeds will be used for general corporate purposes, including debt repayment. This offering will be managed by a syndicate of underwriters and is expected to close on May 16, 2025. The securities are not registered under U.S. laws and cannot be sold or offered in the U.S. The prospectus and related documents will be available on SEDAR+ within two business days.
Potential Positives
- Brookfield Infrastructure is set to issue $250 million in Fixed-to-Fixed Reset Rate Subordinated Notes, indicating strong market interest and support.
- The notes provide a stable interest rate of 5.598% for the first five years, which is attractive to investors seeking predictable returns.
- The proceeds from the offering will be used for general corporate purposes, including repayment of outstanding indebtedness, contributing to the company's financial health.
- The issuance is backed by Brookfield Infrastructure and its subsidiaries, enhancing investor confidence in the security of the investment.
Potential Negatives
- The issuance of subordinated notes may signal that the company is facing financial instability or needing to restructure existing debt, which could indicate underlying financial challenges.
- The fact that the notes are guaranteed on a subordinated basis may raise concerns among investors about their position in the event of liquidation, leading to potential bondholder skepticism.
- The complexity and length of the offering terms (due September 1, 2055) could deter some investors who prefer more straightforward investments, potentially limiting demand.
FAQ
What is the amount Brookfield Infrastructure is offering in subordinated notes?
Brookfield Infrastructure is offering $250 million aggregate principal amount of Fixed-to-Fixed Reset Rate Subordinated Notes.
What is the interest rate on the subordinated notes?
The notes will initially bear an interest rate of 5.598% until September 1, 2030.
When is the expected closing date for this offering?
The offering is expected to close on or about May 16, 2025, subject to customary closing conditions.
Who can access the prospectus documents for the offering?
The prospectus documents will be accessible through SEDAR+ within two business days and can also be obtained from underwriters.
Can these securities be offered in the United States?
No, the securities have not been and will not be registered under the U.S. Securities Act and cannot be offered in the U.S.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$BIP Hedge Fund Activity
We have seen 113 institutional investors add shares of $BIP stock to their portfolio, and 171 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- CONNOR, CLARK & LUNN INVESTMENT MANAGEMENT LTD. removed 1,468,691 shares (-61.6%) from their portfolio in Q1 2025, for an estimated $43,752,304
- CCLA INVESTMENT MANAGEMENT added 1,453,772 shares (+33.5%) to their portfolio in Q1 2025, for an estimated $43,307,867
- ROYAL BANK OF CANADA removed 1,223,895 shares (-2.6%) from their portfolio in Q4 2024, for an estimated $38,907,622
- INTERNATIONAL ASSETS INVESTMENT MANAGEMENT, LLC removed 1,171,958 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $37,256,544
- NEXUS INVESTMENT MANAGEMENT ULC removed 1,149,797 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $34,252,452
- BANK OF MONTREAL /CAN/ removed 1,123,547 shares (-3.8%) from their portfolio in Q1 2025, for an estimated $33,470,465
- MACKENZIE FINANCIAL CORP removed 980,443 shares (-11.2%) from their portfolio in Q1 2025, for an estimated $29,207,396
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
All amounts in Canadian dollars unless otherwise stated
The prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with this offering will be accessible through SEDAR+ within two business days.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATES
BROOKFIELD, NEWS, May 13, 2025 (GLOBE NEWSWIRE) -- Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN) (“Brookfield Infrastructure”) today announced that it has agreed to issue $250 million aggregate principal amount of Fixed-to-Fixed Reset Rate Subordinated Notes (the “Notes”) due September 1, 2055. The Notes will bear interest at an annual rate of 5.598% until September 1, 2030 and thereafter will be reset every five years at an annual rate equal to the Five Year Government of Canada Yield, plus a spread of 2.713%; provided, that the interest rate during any five-year interest period will not reset below 5.598%. Brookfield Infrastructure intends to use the net proceeds of the offering for general corporate purposes, including for the repayment of outstanding indebtedness.
The Notes will be issued by Brookfield Infrastructure Finance ULC, an indirect wholly-owned subsidiary of Brookfield Infrastructure, and are guaranteed on a subordinated basis by Brookfield Infrastructure and certain of its other subsidiaries.
The Notes will be issued pursuant to a base shelf prospectus dated January 23, 2025 and a related prospectus supplement to be dated May 14, 2025. The issue is expected to close on or about May 16, 2025 subject to customary closing conditions.
The Notes are being offered through a syndicate of underwriters led by CIBC Capital Markets, Scotiabank, TD Securities, BMO Capital Markets, National Bank Financial Markets and RBC Capital Markets.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction, nor shall there be any offer or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement. The offer and sale of the securities has not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold in the United States or to United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Access to the prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with the offering of the Notes is provided in accordance with securities legislation relating to procedures for providing access to a prospectus supplement, a base shelf prospectus and any amendment thereto. The prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with the offering will be accessible within two business days at www.sedarplus.ca .
An electronic or paper copy of the prospectus supplement, the corresponding base shelf prospectus and any amendment to the documents may be obtained, without charge, from CIBC Capital Markets by phone at 416-594-8515 or email at [email protected] , from Scotiabank by phone at 416-863-7776 or email at [email protected] or from TD Securities by phone at 416-982-2243 or email at [email protected] .
About Brookfield Infrastructure
Brookfield Infrastructure is a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, midstream and data sectors across the Americas, Asia Pacific and Europe. We are focused on assets that have contracted and regulated revenues that generate predictable and stable cash flows. Investors can access its portfolio either through Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN), a Bermuda-based limited partnership, or Brookfield Infrastructure Corporation (NYSE, TSX: BIPC), a Canadian corporation.
Brookfield Infrastructure is the flagship listed infrastructure company of Brookfield Asset Management, a leading global alternative asset manager, headquartered in New York, with over US$1 trillion of assets under management.
Contact information
| Media: | Investor Relations: |
|
John Hamlin
Director Communications Tel: +44 204 557 4334 Email: [email protected] |
Stephen Fukuda
Senior Vice President Corporate Development & Investor Relations Tel: +1 416 956 5129 Email: [email protected] |
Cautionary Statement Regarding Forward-looking Statements
This news release contains forward-looking statements and information within the meaning of applicable securities laws. The words “will”, “expected”, “intends” or derivations thereof and other expressions which are predictions of or indicate future events, trends or prospects, and which do not relate to historical matters, identify the above mentioned and other forward-looking statements. Forward-looking statements in this news release include statements regarding the terms, use of proceeds and closing of the offering. Although Brookfield Infrastructure believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on them, or any other forward-looking statements or information in this news release. The future performance and prospects of Brookfield Infrastructure are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of Brookfield Infrastructure to differ materially from those contemplated or implied by the statements in this news release are described in the documents filed by Brookfield Infrastructure with the securities regulators in Canada and the United States including under “Risk Factors” in Brookfield Infrastructure’s most recent Annual Report on Form 20-F and other risks and factors that are described therein. Except as required by law, Brookfield Infrastructure undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.
