Brookfield Infrastructure Partners is seeking to raise over $1 billion in equity to fund a backlog of capital expenditure projects and new investment opportunities.
The Toronto-based firm, a listed infrastructure company of Brookfield Asset Management, said up to $16.6 million LP units were available for purchase at $42.10 per share. The offering is issued on a bought deal basis to a group of underwriters including RBC Capital Markets, TD Securities, CitiGroup, Bank of America Merrill Lynch and HSBC. An over-allotment option could see another 2.49 units sold.
Brookfield said the offering could raise gross proceeds of $700 million and will be matched by a private placement of 7.42 million LP units, at the same price, to Brookfield Asset Management and affiliated entities.
Both the offering and the private placement are expected to close on 15 September, with the over-allotment option available for 30 days after closing. Brookfield’s gross amount raised if the over-allotment is fully used would be $1.1 billion.
Brookfield said it intends to use the proceeds to fund a growing backlog of committed growth capital expenditure projects and new investment opportunities, as well as for general working capital purposes.
Brookfield manages around $250 billion of assets, investing in utilities, transport, energy and communications infrastructure sectors across North and South America, Asia Pacific and Europe.