Brookfield Corporation guarantees US$600 million note offering
The company provided a full guarantee for notes priced at 99.966% of their principal amount.
Brookfield Corporation (BN), the asset manager, guaranteed a US$600 million offering of senior unsecured notes issued by Brookfield Finance Inc..
The notes carry a coupon of 5.650% and are due on September 23, 2031. The offering was priced to the public at 99.966%, representing a yield of 5.658%. This pricing reflects a spread of 82 basis points over the benchmark Treasury of 4.375% due August 31, 2031.
Brookfield Corporation provided a full and unconditional guarantee for the payment of principal, premium, and interest on the notes. The company stated that the net proceeds from the sale will be used for general corporate purposes.
The offering involved a group of joint book-running managers including Deutsche Bank Securities Inc., BofA Securities Inc., and Mizuho Securities USA LLC. Distribution was handled by a syndicate of firms, with Securities USA LLC and MUFG Securities Americas Inc. each taking US$73.5 million, and Brookfield Securities LLC taking US$30 million.
The notes include a make-whole call provision available prior to August 23, 2031, and a par call available on or after that date. Covenants attached to the debt include a negative pledge and a change of control provision that allows for a put at 101%.