Brookfield Asset Management Announces Reset Dividend Rate on its Series 9 Preferred Shares
12 Oktober 2021 - 11:02PM
Brookfield Asset Management Inc. (NYSE: BAM) (TSX: BAM.A)
(“Brookfield” or “the company”) today announced that it has
determined the fixed dividend rate on its Class A Preference
Shares, Series 9 (the “Series 9 Preferred Shares”) (TSX: BAM.PR.G)
for the five years commencing November 1, 2021 and ending October
31, 2026.
If declared, the fixed quarterly dividends on
the Series 9 Preferred Shares during the five years commencing
November 1, 2021 will be paid at an annual rate of 2.75% ($0.171875
per share per quarter). This dividend rate represents 218% of the
interpolated yield, calculated as of October 12, 2021 at 10:00 a.m.
(Toronto time), on the 1.00% Government of Canada bond due
September 1, 2026 and the 1.00% Government of Canada bond due June
1, 2027. This dividend will be payable quarterly on the first day
of February, May, August and November, commencing with the dividend
payable on February 1, 2022.
The annual rate currently paid on the Series 9
Preferred Shares is 2.75%. A quarterly dividend payable at this
rate will be paid on November 1, 2021 to shareholders of record on
October 15, 2021.
Conversion Rights Holders of
Series 9 Preferred Shares have the right, at their option,
exercisable not later than 5:00 p.m. (Toronto time) on October 18,
2021, to convert all or part of their Series 9 Preferred Shares, on
a one-for-one basis, into Brookfield’s Class A Preference Shares,
Series 8 (the “Series 8 Preferred Shares”) (TSX: BAM.PR.E),
effective November 1, 2021. Holders of Series 9 Preferred Shares
who elect to convert their shares by the conversion deadline will
receive Series 8 Preferred Shares, effective November 1, 2021 and
will be entitled to receive, if declared, a monthly floating-rate
dividend based on the prime rate.
Holders of Series 8 Preferred Shares also have
the right, at their option, exercisable not later than 5:00 p.m.
(Toronto time) on October 18, 2021, to convert all or part of their
Series 8 Preferred Shares, on a one-for-one basis, into Series 9
Preferred Shares, effective November 1, 2021. Holders of Series 8
Preferred Shares who elect to convert their shares by the
conversion deadline will receive Series 9 Preferred Shares,
effective November 1, 2021 and will be entitled to receive, if
declared, the fixed-rate dividend as described above.
Holders of Series 9 Preferred Shares are not
required to elect to convert all or any part of their Series 9
Preferred Shares into Series 8 Preferred Shares and holders of
Series 8 Preferred Shares are not required to elect to convert all
or any part of their Series 8 Preferred Shares into Series 9
Preferred Shares.
As provided in the share conditions of the
Series 9 Preferred Shares, (i) if Brookfield determines that there
would be fewer than 500,000 Series 9 Preferred Shares outstanding
after November 1, 2021, all remaining Series 9 Preferred Shares
will be automatically converted into Series 8 Preferred Shares on a
one-for-one basis effective November 1, 2021; and (ii) if
Brookfield determines that there would be fewer than 500,000 Series
8 Preferred Shares outstanding after November 1, 2021, no Series 9
Preferred Shares will be permitted to be converted into Series 8
Preferred Shares. There are currently 5,515,981 Series 9 Preferred
Shares outstanding.
Similarly, as provided in the share conditions
of the Series 8 Preferred Shares, (i) if Brookfield determines that
there would be fewer than 500,000 Series 8 Preferred Shares
outstanding after November 1, 2021, all remaining Series 8
Preferred Shares will be automatically converted into Series 9
Preferred Shares on a one-for-one basis effective November 1, 2021;
and (ii) if Brookfield determines that there would be fewer than
500,000 Series 9 Preferred Shares outstanding after November 1,
2021, no Series 8 Preferred Shares will be permitted to be
converted into Series 9 Preferred Shares. There are currently
2,476,185 Series 8 Preferred Shares outstanding.
Holders of Series 8 Preferred Shares and Series
9 Preferred Shares will again have the opportunity to convert their
shares into the other series on November 1, 2026 and every five
years thereafter.
Brookfield Asset Management
Brookfield is a leading global alternative asset manager with over
US$625 billion of assets under management across real estate,
infrastructure, renewable power, private equity and credit.
Brookfield owns and operates long-life assets and businesses, many
of which form the backbone of the global economy. Utilizing its
global reach, access to large-scale capital and operational
expertise, Brookfield offers a range of alternative investment
products to investors around the world — including public and
private pension plans, endowments and foundations, sovereign wealth
funds, financial institutions, insurance companies and private
wealth investors.
Brookfield is listed on the New York and Toronto
stock exchanges under the symbol BAM and BAM.A respectively.
For more information, please visit our website
at www.brookfield.com or contact:
MediaKerrie McHughTel: (212) 618
3469kerrie.mchugh@brookfield.com |
Investor RelationsLinda NorthwoodTel: (416)
359-8647linda.northwood@brookfield.com |