On January 5, 2010, Brookfield Asset Management Inc. (TSX: BAM.A, NYSE: BAM, NYSE EURONEXT: BAMA) announced that as a result of strong investor demand for its previously announced public offering of Preferred Shares, Series 24, it has agreed to increase the size of the offering from C$150 million to C$275 million or from 6,000,000 Preferred Shares to 11,000,000 Preferred Shares. There will not be an underwriters’ option, as was previously granted.
Holders of the Preferred Shares, Series 24 will be entitled to receive a cumulative quarterly fixed dividend yielding 5.40% annually for the initial period ending June 30, 2016. Thereafter, the dividend rate will be reset every five years at a rate equal to the 5-year Government of Canada bond yield plus 2.30%.
The Preferred Shares will be offered by way of prospectus supplement under the short form base shelf prospectus of Brookfield Asset Management Inc. dated January 12, 2009. The prospectus supplement will be filed with securities regulatory authorities in all provinces of Canada.
The net proceeds of the issue will be added to the general funds of Brookfield Asset Management Inc. and be used for general corporate purposes.
The offering is expected to close on or about January 14, 2010. The preferred shares may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements under the U.S. Securities Act.
Further information is found on Brookfield's website.