Brookfield Infra to issue up to $187m of preferred stock

Investors have until 26 January to purchase shares in a listed entity managed by Brookfield Asset Management, offered only in Canada.

Brookfield Infrastructure Partners has made up to eight million shares available for purchase through a Class A preferred stock offer.

The Toronto-based investment company, a listed entity managed by Brookfield Asset Management (BAM), could raise up to C$250 million ($187 million; €176 million) through the stock offer.

The Series 7 Class A preferred stock is being issued at C$25 per unit, and the underwriters have the option to purchase an additional 2 million units. The issue is only being offered in Canada.

Underwriters for this issue include CIBC Capital Markets, RBC Capital Markets, Scotiabank and TD Securities.

Holders of the preferred stock will receive a quarterly fixed distribution of 5 percent, ending on 31 March 2022. When this period ends, holders will have the right to reclassify their stock into Cumulative Class A preferred limited partnership units. The notes will then reset every five years at a rate equal to the five-year Government of Canada bond yield.

Brookfield Infrastructure said it will use the proceeds for investment opportunities, working capital and other corporate purposes. The offering is expected to close on 26 January.

Brookfield Infrastructure previously offered C$250 million of preferred stock last August.

One of the investment manager's largest deals last year, Brookfield Infrastructure's joint bid with Global Infrastructure Partners to acquire Australian freight logistics company Asciano for A$9.05 billion ($6.85 billion; €6.38 billion) required approval from the Supreme Court of New South Wales in July.

In September, Brookfield Infrastructure led a consortium including China Investment Corporation and Singapore's GIC to acquire a 90 percent stake in the $5.2 billion Brazilian gas pipeline company Nova Transportadora do Sudeste

BAM itself is coming off a record breaking year for fundraising, closing Brookfield Infrastructure Fund III at $14 billion, the largest infrastructure fund ever raised. The fund will invest in the transportation, energy and renewables sectors in OECD countries. BAM closed its second infrastructure fund on $7 billion in 2013.