Brookfield Renewable Partners LP Announces New Preferred Units

Brookfield Renewable Partners LP (BEP) has announced a new offering of preferred units (they are units if the issuer is a partnership). As a partnership this offering will likely generate a K-1 at tax time.

BEP is a $3 billion dollar renewable energy partnership that I am not familiar with other than they are another unit of the giant asset manager Brookfield Asset Management.

Being a Canadian partnership there may be withholding on your distributions.

The preliminary prospectus can be read here.

Thanks to EarlyBird for being the ‘earlybird’. Yield talk is in the 5.50% are with a low investment grade rating.

17 thoughts on “Brookfield Renewable Partners LP Announces New Preferred Units”

  1. Anyone looking to buy anything Brookfield would be well served by getting a copy of the corporate structure chart and pinning it to the bulletin board for reference. It’s really a necessity for understanding what you are buying.

    BAM is the mother ship. Or it’s the closest thing to a mother ship the Brookfield family has. It’s a Canadian corporation trading in Canada as BAM.A and the U.S. as BAM.

    BAM is the company Lyn Alden refers to. You might also want to check out Akre Capital Management, and see what Akre thinks about it. Akre is a little better known than Lyn Alden. (Hint: he is buying a boat load.)

    BEP is a Bermudian partnership. If you buy this issue you will get a K-1 issued by a Bermudian partnership. I own BEP, and I promise you I get a K-1 from a Bermudian partnership. It’s one of the harrier K-1s I get. K-1s for preferred are usually much simpler.

    If you’re interested in BEP, be aware that they are just about to issue a parallel security that will not be a partnership, and will not issue a K-1. It will be a Canadian corporation and you will get a 1099. When issued I intend to be a big buyer.

    https://www.sec.gov/Archives/edgar/data/1533232/000119312520010204/d822759df1a.htm

      1. BRF is Brookfield Renewable Power Preferred Equity Inc. It is a wholly-owned subsidiary of BEP.

        BRF is a Canadian corporation. BRF’s sole purpose is to allow BEP to sell preferred securities that will be treated like corporate preferred rather than partnership preferred.

  2. I’m Just going to add one more thought for you all to think about including myself. Randa Duncan Williams a billionaire many times over has been buying with her “Hair on Fire” Enterprise Products Partners. She has bought 1,380,000 shares of EPD since late last fall and has just added more in the last few days. Big purchases on multiple days. Do any of you guys own any??? I think it might be worth looking at. At $26.13 it pays a divie of $1.78 for a yield of 6.81%. I actually owned it about 10 years ago but do not own it at present time. Like I said now, hopefully some of us can exchange ideas with each other.

    1. chuck- epd is one of the best of the us based mlps. The founder passed away but it is still very well run though the stock has been depressed and is one of the reason wealthy private buyers have been interested.

    2. I’ve been rolling with EPD for about 7 years. Talk about watching paint dry. While IMO, it is the best of breed along with MMP, this damned thing can’t get out of its own way. Floundering for years… But that’s OK. Boring is OK with the amount of cash it sheds off to my accounts. It’s gonna sting if they convert to a C corp. Been there and done that before.

      1. There has been much discussion over at IV about EPD’s possible conversion. The speculation is that if they do it, they’ll find a way that isn’t tax hurtful unless your capital account is negative. The Duncans control about a third of EPD, so that is a positive for us peons. Randa has been buying 50K units per day, adding to the almost 700 million she already owns.

        Maybe her capital account is negative. lol

        JMO

  3. Lyn Alden really loves this company and the mother ship of BAM she says is her “favorite” long term hold. She is a really really smart gal and I respect what she says. Maybe I’ll take a chance on this one. Does anyone have the symbol yet??? My CPA and myself are both becoming weary of this impossible to find anything “decent” to buy in fixed income. He says he can’t find a single idea thats worth a damn.

    1. OTC ticker is not out yet Chuck–should be before the day is out. Permanent ticker will be BEP-A after OTC trading is over.

    2. Alden knows her stuff…you may want to check out all the regular stocks of Brookfield, some pay dividends exceeding the preferred. BPR 7%
      BPY 7% BEP 4%

    1. Could be Bob–I didn’t go through it with a fine tooth comb–message is the same–do your due diligence to find out if there is withholding or if your broker is going to try to charge an extra fee upon purchase.

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