Brookfield Infrastructure closed a $300 million public offering of subordinated notes for refinancing and corporate purposes.
Quiver AI Summary
Brookfield Infrastructure Partners L.P. has successfully closed a public offering of $300 million in Fixed-to-Fixed Reset Rate Subordinated Notes, which are set to mature on March 15, 2055. These notes will initially carry an interest rate of 6.750% until March 2030, after which the rate will be adjusted every five years based on the five-year U.S. Treasury rate plus a spread, but will not fall below 6.750%. The proceeds from this offering will be used to refinance existing debt and for general corporate purposes. The notes were issued by Brookfield Infrastructure Finance ULC and are guaranteed by Brookfield Infrastructure and its subsidiaries. The offering was managed by several financial institutions including BofA Securities and RBC Capital Markets. Brookfield Infrastructure, part of Brookfield Asset Management, is focused on owning and operating high-quality infrastructure assets globally.
Potential Positives
- Brookfield Infrastructure successfully closed a public offering of $300 million in Fixed-to-Fixed Reset Rate Subordinated Notes, enhancing its capital structure.
- The notes offer an attractive interest rate of 6.750% for the first five years, potentially stabilizing cash flows during that period.
- Proceeds from the offering will be used to refinance existing indebtedness, which could improve the company’s financial flexibility and reduce interest costs.
- The issuance adds to Brookfield Infrastructure's portfolio diversity, with the notes being backed by an indirect wholly-owned subsidiary and guaranteed by the parent company and other subsidiaries.
Potential Negatives
- The issuance of $300 million in subordinated notes indicates increasing reliance on debt financing, which may raise concerns about the company's long-term financial stability.
- The high interest rate of 6.750% until 2030 may signal a higher cost of borrowing, potentially affecting future profitability.
- Refinancing existing indebtedness could imply that the company is facing challenges in managing its current debt levels, leading to potential liquidity issues.
FAQ
What are the key details of Brookfield's $300 million note offering?
Brookfield Infrastructure announced a public offering of $300 million in subordinated notes with a 6.750% interest rate, maturing in 2055.
How will Brookfield use the proceeds from the note offering?
The net proceeds will be used to refinance existing debt and for general corporate purposes.
Who managed the public offering of the notes?
The offering was managed by BofA Securities, Mizuho Securities, RBC Capital Markets, and several other financial institutions.
What type of company is Brookfield Infrastructure?
Brookfield Infrastructure is a leading global infrastructure company focused on owning and operating high-quality, long-life infrastructure assets.
Where can investors access Brookfield Infrastructure's portfolio?
Investors can access the portfolio through Brookfield Infrastructure Partners L.P. or Brookfield Infrastructure Corporation.
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 144 institutional investors add shares of $BIP stock to their portfolio, and 146 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- CAPITAL WORLD INVESTORS removed 6,579,790 shares (-17.3%) from their portfolio in Q3 2024
- BROOKFIELD CORP /ON/ added 3,287,267 shares (+234.9%) to their portfolio in Q3 2024
- CIBC WORLD MARKET INC. added 2,197,268 shares (+44.5%) to their portfolio in Q3 2024
- ROYAL BANK OF CANADA added 2,170,225 shares (+4.9%) to their portfolio in Q3 2024
- MACKENZIE FINANCIAL CORP added 1,826,627 shares (+29.0%) to their portfolio in Q3 2024
- WULFF, HANSEN & CO. removed 1,557,386 shares (-96.4%) from their portfolio in Q3 2024
- SELECT EQUITY GROUP, L.P. added 1,225,524 shares (+29.2%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
All amounts in U.S. dollars
BROOKFIELD, News, Nov. 29, 2024 (GLOBE NEWSWIRE) -- Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP.UN) (“Brookfield Infrastructure”) today announced the closing of a public offering of $300 million of Fixed-to-Fixed Reset Rate Subordinated Notes due March 15, 2055 (the “notes”).
The notes will bear interest at an annual rate of 6.750% until March 15, 2030 and thereafter will be reset every five years at an annual rate equal to the five-year U.S. treasury rate, plus a spread of 2.453%; provided, that the interest rate during any five-year interest period will not reset below 6.750%. Brookfield Infrastructure intends to use the net proceeds of the offering to refinance existing indebtedness and for general corporate purposes.
The notes were 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.
BofA Securities, Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, Santander US Capital Markets LLC, BMO Capital Markets Corp., MUFG Securities Americas Inc., Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc. acted as joint book-running managers for the offering.
This news release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
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 global alternative asset manager with over $1 trillion of assets under management.
Contact Information
| Media: | Investor Relations: |
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Simon Maine
Managing Director, Corporate Communications Tel: +44 739 890 9278 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 may contain forward-looking statements and information within the meaning of applicable securities laws. The words “will” and “intends”, derivatives thereof and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters, identify forward-looking statements. Forward-looking statements in this news release include statements regarding the notes and the use of proceeds therefrom. 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.
