Our site runs on donations to keep it running for free. Please consider donating if you enjoy your experience here!

Brookfield Infrastructure Partners Prices Preferred Issue

Brookfield Infrastructure Partners (BIP) has priced there new preferred unit offering.

The issue priced at 5.125%–about where the guesses were at yesterday.

The issue is investment grade–although low investment grade at BBB- from S&P.

This issue should trade immediately under OTC grey market ticker BIPPF. I plan to buy a taste of this issue for a long term holding.

The pricing term sheet can be read here.

6 thoughts on “Brookfield Infrastructure Partners Prices Preferred Issue”

  1. A quick warning for Fidelity traders. I picked up 1000 units @ $25.35 and incurred a $50 foreign settlement fee. It was my fault I didn’t catch the commission since I have the trading preview screen disabled. I spoke with a Fidelity rep who stated that whoever delivered the units to Fidelity (underwriter?) didn’t use the automated system and that the units were delivered manually, thus the fee. In other words, if you trade BIPPF on Fidelity, you’re gonna pay $100 bucks round trip commission. That puts my cost basis @ $25.45 so I think I’ll be fine…

  2. directed at tim or any body else, i’ve been trying to buy some of this for 2 days my broker just emailed said its trading in canada otc market and not availible? this was to eventually be on nyse and denominated in us dollars

    I’ve been watching since yesterday on some site OTC pinksheet sent my broker an email when price was 25.10, since his secretary said he’s tied up in meetings? what is the straight dope/ thanks mike

    1. I was able to buy BIPPF online no problem via Fidelity.
      It’s trading like any other new issue typically does in the OTC grey market

        1. Yes, unfortunately I did

          I think if we waited until it hit the NYSE the foreign fee would disappear. But i did not want to run the risk of the price running up before that happens. I may shoot them an email if that happens and ask that they reverse it

    2. Sadly, calling brokers about such issues rarely gets you anything. More often than not the info given is wrong. Apologies to any current or retired brokers but too many are just lazy.

      BIPPF is NOT a Canadian issue. The issuer is not Canadian, it’s not registered with the Canadian version of the SEC and won’t trade on a Canadian exchange. And it’s not denominated in C$.

      Your broker gets a zero in my book.

      Truth is the issuer is a Bermudian partnership, the issue is denominated in US$, is SEC registered, will trade on the NYSE under a standard ticker, and is currently trading on the US OTC. Only hitch is the OTC assigned it a “F” ticker. That “F” ticker is why some brokerages won’t trade it, and why Vanguard thinks they need a $50 foreign transaction fee.

      If you press the point with the broker, you will likely win out but it’s probably a Pyrrhic victory.

Leave a Reply

Your email address will not be published. Required fields are marked *