Skip to main content

Brookfield Asset Management, a company with an appetite for deals, pulled in $300-million on Tuesday by tapping income-hungry investors.

In the latest corporate debt financing that capitalized on strong individual investor interest in high quality paper, Brookfield was able to double the size of a planned offering of six-year bonds to $300-million. The new debt features a 5.2 per cent interest rate, or 225 basis points over the comparable Government of Canada bond. Federal government debt yields are at record lows, and that's pushing the retail crowd into the corporate bond market.

CIBC World Markets and RBC Dominion Securities led the transaction.

Story continues below advertisement

To give investors comfort, single-A-rated Brookfield agreed to buy back this paper at 101 cents on the dollar if its credit rating drops below investment grade after a change in control at the conglomerate.

Brookfield has been an active player in real estate, infrastructure and power since the credit crunch began, as assets can be purchased at bargain prices on any historic measure. Last week, Brookfield unveiled a recapitalization plan for Chicago-based mall owner General Properties Inc. that would see the Canadian company inject $2.63-billion (U.S.).

Report an error
About the Author
Business Columnist

Andrew Willis is a business columnist for the Report on Business at The Globe and Mail, based in Toronto.He has been in business communications and journalism for three decades. More

Comments are closed

We have closed comments on this story for legal reasons. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.