Brookfield BRP Holdings (Canada) Inc. has announced a new issuance of perpetual subordinated notes.
Please note these are ‘perpetual’ meaning no fixed maturity date.
The issuer is a subsidiary of Brookfield Renewable Partners LP (BEP) who fully and unconditionally guarantees these notes.
Yield talk for the issue is in the 4.875% area with a lower investment grade rating.
The preliminary prospectus for the issue can be seen here.
EarlyBird was right on this one
10 thoughts on “Brookfield BRP Holdings (Canada) Inc. to Sell Baby Bonds”
I was wondering if someone could give me some clarity on this? BRP is owned by BEP which is 45% owned by BAM? Sorry for a dumb question but….It seems all the Guarantors of this Preferred are Limited Partnerships. Does that mean this Preferred issues a K-1?
Given the current state of commercial real estate and what’s almost certainly going to turn out to be the Green Energy Fiasco. Anybody have any concerns (starting at the BAM level) about their current debt load and ability to fund the dividend?
It’s s debt.
Get’s a 1099 and a qualified dividend free of withholding. Real guarantor is BEP.
4 5/8’s too low for me. Might ink even lower.
After a read of the relevant parts of the prospectus, my take away is that this will be treated, for US purposes, like preferred stock, with the dividend being QDI.
For Canadian purposes, it is debt, meaning no 15% (or any percent) withholding.
US$ denominated, SEC registered and NYSE listed.
Proceeds are being used to redeem a CA$ 5.75% min rate issue.
Thanks all for the tips and tricks 🙂
QDI= Pays Qualified dividends
This lays it out.
“Interest payments made with respect to the Notes that are treated as dividends for U.S. federal income tax purposes generally should be taxable to non-corporate U.S. Holders at the preferential rates applicable to long-term capital gains if the dividends constitute “qualified dividend income.” To be eligible for these reduced rates”
Thanks Bob-in-DE for digging into this for us.