Brookfield Infrastructure completes US$950 million equity offering
On May 1, 2015, Brookfield Infrastructure completed its previously announced equity offering of 13,335,000 L.P. units (including 1,335,000 L.P. units sold pursuant to the exercise of the underwriters' over-allotment option) for gross proceeds of US$600 million. The units were issued, on a bought deal basis, at a price of US$45.00 per unit to a syndicate of underwriters co-led by RBC Capital Markets, TD Securities Inc., Credit Suisse and HSBC.
Concurrent with the public offering, Brookfield Asset Management Inc. and certain of its related entities (other than Brookfield Infrastructure) (collectively, "Brookfield") purchased, directly or indirectly, 8,101,850 redeemable partnership units of Brookfield Infrastructure's holding limited partnership (RPUs) at the offering price (net of underwriting commissions). The aggregate gross proceeds of the offering and private placement of RPUs is approximately US$950 million.
Brookfield Infrastructure intends to use the net proceeds of the offering and the issuance of RPUs to Brookfield for investment opportunities, working capital and other general corporate purposes.
Brookfield Infrastructure operates high quality, long-life assets that generate stable cash flows, require relatively minimal maintenance capital expenditures and, by virtue of barriers to entry and other characteristics, tend to appreciate in value over time. Its current business consists of the ownership and operation of premier utilities, transport, energy, and telecommunications infrastructure assets in North and South America, Australia, and Europe. It also seeks acquisition opportunities in other infrastructure sectors with similar attributes. Brookfield Infrastructure's payout policy targets 5% to 9% annual growth in distributions. Units trade on the New York and Toronto stock exchanges under the symbols BIP and BIP.UN, respectively.
Further information can be found on Brookfield Infrastructure's website.