Giant Bermuda based partnership Brookfield Property Partners (BPY) has announced a new offering of cumulative, redeemable, perpetual preferred units (preferreds offered by partnerships are called units).
BPY is a giant partnership with over $88 billion in assets.
BPY has 2 other preferred units outstanding which can be seen here–both trade relatively strongly. They have coupons of 6.375% and 6.50% respectively. Neither are redeemable until 2024.
This issue will carry a K-1 with it at tax time.
This issue will be rated BB+ by Standard and Poors–1 notch below investment grade.
The preliminary prospectus can be seen here.
NOTE–watch the brokers for added charges on a purchase. They may classify as foreign and attempt to charge an extra $50.
Thanks to mcg and EarlyBird for being on this early. EarlyBird has yield talk in the 6% area. Most issues lately are coming in a little below the yield talk.
If this coupon does hit the 6% mark I may be buying some of this–assuming it doesn’t come out of the gate ‘hot’.