Brookfield Renewable Partners LP Prices Preferred issue-Updated

Energy company Brookfield Renewable Partners LP (BEP) has priced the previously announced preferred unit offering.

The issue priced at 5.25%. It will become redeemable in 2025.

The issue is rated BBB- (low investment grade) by Standard and Poors.

The issue will trade immediately on the OTC Grey market under ticker BKFRF.

Update from earlier–BEP is a Bermuda company so there will be no Canadian withholding. But there will be a K-1 issued.

8 thoughts on “Brookfield Renewable Partners LP Prices Preferred issue-Updated”

  1. OK, so which BEP issue do you prefer?

    Issue #1 has a stripped yield of 5.25%, has no call risk, can adjust upward if rates rise but can never go below 5%, no matter how low rates go.

    Issue #2 is 5.10% stripped, is trading 75 cents over redemption price, which will matter when it becomes callable in about 5 years. Fixed coupon of 5.25%.

  2. 5.25% from a low investment grade energy company? And it’s trading at a premium ?? No Thanks. The world has got to be kidding me. Just shows that in this market some people will buy anything,

  3. As a Bermuda company trading on US Exchanges, I cannot imagine withholding of Canadian taxes even though it is majority owned by BAM.

    In terms of K1 income from their website:

    “Is Brookfield Renewable Partners a Master Limited Partnership?

    Brookfield Renewable Partners does not have the same tax characteristics of a U.S. Master Limited Partnership. There is no U.S. source income that flows out to investors that would cause U.S. federal, state and local income tax filing obligations. There is no UBTI (Unrelated Business Taxable Income).”

    Could be wrong but It looks to me like a potential IRA holding which avoids any K1 filing issues.

    1. SteveA–you are correct–I believe Landlord mentioned that earlier–I just added an update to the text.

      1. Thanks. Missed that one.

        A prior poster mentioned BRENF. That is the same company but is a Canadian OTC. So the underlying issue trades on the TSX which means Canadian withholding taxes. Plus the K1 schedule to deal with assuming you don’t have it in an IRA (which most people would not do since it has Canadian withholding taxes).

        It made holding this company, via BRENF, pretty tax paperwork heavy as opposed to this offering in an IRA account.

        1. BKFRF sold 570,000 shares with bid of $25.60, last transaction $25.52+ a few minutes after 11 a.m. EST. I thank Tim for alerting one of the Directors of Brookfield is a capable and honest billionaire. Wish I bought more BEP. It kept on climbing (the commons) with another dividend increase to $0.5425 from $0.515 per quarter a year ago. Nonetheless, the pro forma dividend yield is only 3.77 for the common. TO me, this is extremely unusual, i.e. typically the common share proforma yield is higher than the preferred. I believe that BEP is no doubt a momentum stock, Yep, the 6 month and 1 year chart rivals AAPL (Apple computer). I called Schwab on SteveA’s BRENF. They did some research with Bloomberg machine, cusip etc. The price quoted on Schwab is US. approximately $25.33 Canadian, slightly above par with the next ex date 4/14/2020 callable in January 2021. Obviously this is a better buy. But takes some work. If I should try I will need to sell something. Thanks SteveA.

          1. BRENF, if not called in 2021, is a fixed rate reset issue. However it has a minimum coupon rate. Do not recall terms but minimum is close to current yield if my memory is correct

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