Brookfield prices Canadian public offering

The Canadian infrastructure fund will issue 40m new shares at C$15.55 per share. Proceeds from the offering will be used to partially fund Brookfield’s proposed A$1.8bn recapitalisation of Babcock & Brown Infrastructure.

Brookfield Infrastructure Partners (BIP), the Canadian infrastructure fund managed by Brookfield Asset Management, priced its initial public offering of shares at C$15.55 per unit ($14.46; €9.80), according to a statement issued today.

BIP will issue about 40 million partnership units at this price, raising approximately C$616 million, including approximately 4 million units that Brookfield Asset Management has agreed to purchase for C$64 million. 

Proceeds from the sale will be used to partially fund Brookfield’s proposed A$1.8 billion (€1.1 billion; $1.6 billion) recapitalisation of Babcock & Brown Infrastructure. The deal, which recently cleared a key regulatory hurdle when the Australian Foreign Investment Review Board said it has no objections to the recapitalisation, is expected to close in late November.

The offering is expected to close on or about 6 November. Credit Suisse Securities, RBC Capital Markets, Citigroup Global Markets and HSBC Securities are the as joint book-running managers and underwriters for the offering.

New York and Toronto Stock Exchange-listed BIP is Brookfield Asset Management’s primary infrastructure investment arm. It most recently announced adjusted net operating income of $12.1 million for its third quarter ending 30 September, versus $13.1 million for the quarter ending 30 September 2008.

The firm defines adjusted net operating income as its net operating income adjusted for the impact of depreciation, depletion and amortization, deferred taxes and other non-cash items.

Brookfield’s Toronto-listed shares dropped 11 percent, ending the day at C$15.68. Its New York-listed shares ended the day down 12 percent, closing on $14.50.