Brookfield Infrastructure Announces Reset Distribution Rate on Its Series 1 Preferred Units
June 01 2020 - 4:55PM
Brookfield Infrastructure Partners L.P. (“Brookfield
Infrastructure”) (NYSE: BIP; TSX: BIP.UN) today announced that it
has determined the fixed distribution rate on its Cumulative Class
A Preferred Limited Partnership Units, Series 1 (“Series 1 Units”)
(TSX: BIP.PR.A) for the five years commencing July 1, 2020 and
ending June 30, 2025.
Series 1 Units and Series 2 Units
If declared, the fixed quarterly distributions
on the Series 1 Units during the five years commencing July 1, 2020
will be paid at an annual rate of 3.974% ($0.248375 per unit per
quarter).
Holders of Series 1 Units have the right, at
their option, exercisable not later than 5:00 p.m. (Toronto time)
on June 15, 2020, to reclassify all or part of their Series 1
Units, on a one-for-one basis, into Cumulative Class A Preferred
Limited Partnership Units, Series 2 (the “Series 2 Units”),
effective June 30, 2020.
The quarterly floating rate distributions on the
Series 2 Units will be paid at an annual rate, calculated for each
quarter, of 3.56% over the annual yield on three-month Government
of Canada treasury bills. The actual quarterly distribution rate in
respect of the July 1, 2020 to September 30, 2020 distribution
period for the Series 2 Units will be 0.96159% (3.815% on an
annualized basis) and the distribution, if declared, for such
distribution period will be $0.2403975 per unit, payable on
September 30, 2020.
Holders of Series 1 Units are not required to
elect to reclassify all or any part of their Series 1 Units into
Series 2 Units.
As provided in the unit conditions of the Series
1 Units, (i) if Brookfield Infrastructure determines that there
would be fewer than 1,000,000 Series 1 Units outstanding after June
30, 2020, all remaining Series 1 Units will be automatically
reclassified into Series 2 Units on a one-for-one basis effective
June 30, 2020; or (ii) if Brookfield Infrastructure determines that
there would be fewer than 1,000,000 Series 2 Units outstanding
after June 30, 2020, no Series 1 Units will be permitted to be
reclassified into Series 2 Units. There are currently 4,989,265
Series 1 Units outstanding.
The Toronto Stock Exchange (“TSX”) has
conditionally approved the listing of the Series 2 Units effective
upon reclassification. Listing of the Series 2 Units is subject to
Brookfield Infrastructure fulfilling all the listing requirements
of the TSX and, upon approval, the Series 2 Units will be listed on
the TSX under the trading symbol “BIP.PR.G”.
Brookfield Infrastructure
Partners is a leading global infrastructure company that
owns and operates high-quality, long-life assets in the utilities,
transport, energy and data infrastructure sectors across North and
South America, Asia Pacific and Europe. We are focused on assets
that generate stable cash flows and require minimal maintenance
capital expenditures. Investors can access its portfolio either
through Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX:
BIP.UN), a Bermuda-based limited partnership, or Brookfield
Infrastructure Corporation (NYSE, TSX: BIPC), a Canadian
corporation. Further information is available at
www.brookfield.com/infrastructure.
Brookfield Infrastructure is the flagship listed
infrastructure company of Brookfield Asset Management, a global
alternative asset manager with over $515 billion of assets under
management. For more information, go to www.brookfield.com.
For more information, please contact:
Media:Claire Holland Senior Vice President,
Communications Tel: (416) 369-8236 Email:
claire.holland@brookfield.com |
Investors:Rene LubianskiManaging Director,
InvestmentsTel: (416) 956-5196Email:
rene.lubianski@brookfield.com |
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