Brookfield Properties to issue $250 million in preferred share offering
Mon Aug 31, 7:00 PMThe Canadian Press
By The Canadian Press
TORONTO - Brookfield Properties Corp. (TSX: BPO.TO) said Monday it would issue $250 million in preferred shares that will be used for general corporate purposes.
The company had planned an offering of $150 million, but increase the size of the financing due to investor demand for the 6.75 per cent preferred shares.
Brookfield Properties has also granted the underwriters an over-allotment option for an additional 1.5 million preferred shares that could increase the financing to $287.5 million.
The issue will be led by a syndicate of underwriters including CIBC and Scotia Capital.
The preferred shares will be issued at a price of $25 per share and pay a cumulative quarterly fixed dividend yielding 6.75 per cent annually for the initial five year period ending Sept. 30, 2014.
The dividend will be reset on Sept. 30, 2014 and every five years thereafter at a rate equal to the five-year Government of Canada bond yield plus 4.17 per cent.
Brookfield Properties owns, develops and manages office buildings.
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