No. of Recommendations: 1
https://seekingalpha.com/news/4040548-brookfield-a...I do not know or understand the debt world very well.
However, raising debt to refinance debt strikes me as something to pay attention to.
So…to the Shrewd brain trust, is this just normal course of business for BN? Or, am I correct to pay attention to this.
m
No. of Recommendations: 3
aising debt to refinance debt strikes me as something to pay attention to.
So…to the Shrewd brain trust, is this just normal course of business for BN?
This is completely normal.
They have debts coming due in early 2014, meaning they need to pay back that capital, presumably about $700m worth. So in order to pay off their debt as is required by law, they either have to have $700m lying around that they don't need, or they have to sell new debt, as they are doing. And they don't want to wait until weeks before expiry, because you never know what markets might do, so they issue that debt now, giving them a few months' leeway.
dtb
No. of Recommendations: 2
This looks very much like business as usual.
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On February 4, 2022, the Corporation closed a $400 million offering by re-opening its 3.900% notes due 2028, issued at a price equal to 107.134% of their face value for an effective yield of 2.553%, and a $400 million offering of 3.625% notes due 2052, issued at a price equal to 99.908% of their face value for an effective yield of 3.630%.
On April 12, 2021, the Corporation closed a $500 million offering of 2.724% notes due 2031. A portion of the proceeds from the offering were used to redeem the Corporation’s C$600 million 4.54% notes due March 31, 2023.
On July 26, 2021, the Corporation closed a $600 million offering of 2.340% notes due 2032 and a $250 million offering of 3.500% notes due 2051 (“2051 notes”). The 2051 notes were issued at a price equal to 104.590% of their face value for an effective yield of 3.255%.
On February 21, 2020, the Corporation closed a $600 million offering of 3.45% notes due 2050, issued at a price equal to 99.058% of their face value for an effective yield of 3.501%. A portion of the proceeds from the offering were used to redeem the Corporation’s C$350 million 5.30% notes due March 1, 2021.
On April 9, 2020, the Corporation closed a $600 million offering of 4.350% notes due 2030, issued at a price equal to 99.903% of their face value for an effective yield of 4.362%. On April 14, 2020, the Corporation closed an additional $150 million of the 4.350% notes at a price equal to 99.878% of their face value for an effective yield of 4.365%.
On September 28, 2020, the Corporation closed a $500 million offering of 3.50% notes due 2051, issued at a price equal to 99.313% of their face value for an effective yield of 3.537%.
On October 16, 2020, the Corporation closed a $400 million inaugural green subordinated note offering. The notes are due 2080 and have a coupon of 4.625%.
On November 24, 2020, the Corporation closed a $230 million offering of green perpetual subordinated notes. The notes have a coupon of 4.50%.
