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Brookfield Infrastructure Partners LP Prices New Preferred Units

Credit rating corrected to BBB- investment grade from Standard and Poors.

Brookfield Infrastructure Partners LP (BIP) has priced the previously announced preferred stock unit offering.

As expected the issue priced at a coupon of 5%. The company will sell 8 million shares.

The issue is rated investment grade by S&P–BBB-, non qualified, but cumulative.

This issue will generate a K-1 at tax time (being a partnership).

BIP is domiciled in Bermuda and there should be no taxes withheld from the dividend payments–unfortunately that may not be the case as brokers tend to mess up foreign tax withholding.

The pricing term sheet can be found here.

3 thoughts on “Brookfield Infrastructure Partners LP Prices New Preferred Units”

  1. BIPFF is now available on Fidelity but they want $50 because of it being a foreign company. Going to check Vanguard.

  2. K-1’s a non starter. Too many people getting notices May 1st, after taxes already filed, to make it worthwhile.

    I had someone get a K-1 for a pfd in an IRA. It was for less than $1,000….so it was exempt. A year or two later he got a letter from IRS saying he owed like $100 for the K-1 income. IT WAS EXEMPT. The cpa also felt it was exempt. The person said “I don’t want to talk to them I just sent a check”.

    Haven’t signed up for the extra work since. Too hard

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