Brookfield Establishes C$1 Billion Fund to Provide Debtor-in-Possession Financing With the Backing of EDC, CIBC and Sun Life
19 August 2009 - 4:00PM
Marketwired
Brookfield Asset Management ("Brookfield") (TSX: BAM.A)(NYSE:
BAM)(EURONEXT: BAMA) and Export Development Canada ("EDC") today
announced that Brookfield has established a C$1 billion fund (the
"Fund") with the backing of EDC to provide debtor-in-possession
("DIP") loans and other specialty finance solutions to Canadian
companies undergoing a restructuring or reorganization.
Brookfield has committed to provide 10 per cent of the Fund's
capital and will manage the Fund, identifying and evaluating
investment opportunities. EDC played a lead role in structuring the
Fund, and is the largest investor with an initial participation of
C$450 million that could grow to C$1 billion.
"Brookfield's history of specialty bridge lending and expertise
in corporate restructuring positions us well to provide tailored
solutions to support companies through the restructuring process.
We believe that providing financing for companies undertaking a
restructuring will help viable enterprises emerge from the current
recession in a strong competitive position," said Joe Freedman, the
Senior Managing Partner responsible for the Fund at Brookfield.
DIP financing provides companies seeking protection from
creditors with capital to continue to operate their business while
they complete a plan of reorganization. The Fund will target
mid-market and larger scale opportunities where at least C$20
million of financing is required.
"This Fund will help Canadian companies gain access to credit
during restructuring, when it's most needed," said Eric Siegel,
President and CEO of EDC. "This new partnership with Brookfield
enables us to further assist even more Canadian companies during
the current downturn."
Fund investors also include Canadian Imperial Bank of Commerce
("CIBC") and Sun Life Financial Inc.
"CIBC is pleased to be a part of this initiative which will help
support Canadian companies in these uncertain economic times," said
Laura Dottori-Attanasio, Global Head of Corporate Credit Products
at CIBC.
About Export Development Canada
EDC is Canada's export credit agency, offering innovative
commercial solutions to help Canadian exporters and investors
expand their international business. EDC's knowledge and
partnerships are used by more than 8,300 Canadian companies and
their global customers in up to 200 markets worldwide each year.
EDC is financially self-sustaining, a recognized leader in
financial reporting and economic analysis, and has been recognized
as one of Canada's Top 100 Employers for eight consecutive
years.
About Brookfield Asset Management
Brookfield Asset Management Inc., focused on property, power and
infrastructure assets, has over US$80 billion of assets under
management and is listed on the New York and Toronto Stock
Exchanges under the symbols BAM and BAM.A, respectively, and on
NYSE Euronext under the symbol BAMA. For more information, please
visit the Company's website at www.brookfield.com.
Forward-looking Statements
Note: This news release contains forward-looking information
within the meaning of Canadian provincial securities laws and
"forward-looking statements" within the meaning of Section 27A of
the U.S. Securities Act of 1933, as amended, Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, "safe harbor"
provisions of the United States Private Securities Litigation
Reform Act of 1995 and in any applicable Canadian securities
regulations. The words "will", "provide", "committed", "believe",
derivations thereof and other expressions that are predictions of
or indicate future events, trends or prospects and which do not
relate to historical matters identify forward-looking statements.
Forward-looking statements in this news release include statements
in regards to the success of the Fund and other statements with
respect to Brookfield's beliefs, outlook, plans, expectations and
intentions for the Fund. Although Brookfield Asset Management
believes that the anticipated future results, performance or
achievements expressed or implied of such assets by the
forward-looking statements and information are based upon
reasonable assumptions and expectations, the reader should not
place undue reliance on forward-looking statements and information
as such statements and information involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements to differ materially from anticipated
future results, performance or achievement expressed or implied by
such forward-looking statements and information.
Factors that could cause actual results to differ materially
from those contemplated or implied by forward-looking statements
include: economic and financial conditions in the countries in
which we do business; the behaviour of financial markets; the
market, including competition, for the provision of DIP financing;
and other risks and factors detailed from time to time in the
company's form 40-F filed with the Securities and Exchange
Commission as well as other documents filed by the company with the
securities regulators in Canada and the United States including the
company's most recent Management's Discussion and Analysis of
Financial Results under the heading "Business Environment and
Risks."
We caution that the foregoing factors that may affect future
results is not exhaustive. When relying on our forward-looking
statements to make decisions with respect to Brookfield Asset
Management, investors and others should carefully consider the
foregoing factors and other uncertainties and potential events.
Except as required by law, the company undertakes no obligation to
publicly update or revise any forward-looking statements or
information, whether written or oral, as a result of new
information, future events or otherwise.
Contacts: Media: Brookfield Asset Management Denis Couture, SVP,
Corporate and International Affairs (416) 956-5189 (416) 363-2856
(FAX) dcouture@brookfield.com Investor Relations: Brookfield Asset
Management Katherine Vyse, SVP, Investor Relations and
Communications (416) 369-8246 (416) 363-2856 (FAX)
kvyse@brookfield.com www.brookfield.com Export Development Canada
Phil Taylor (613) 598-2904 ptaylor@edc.ca www.edc.ca
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