THERE SEEMS TO BE CONFUSION–HERE FROM THE MERGER DOCUMENTS
The distribution rate for the New LP Preferred Units will be 6.25% per annum of the $25.00 liquidation preference per unit (equal to $1.5625 per unit per annum). The distribution rate per annum may also increase by 5.00% in certain instances as described further in “Information Concerning New LP and the New LP Preferred Units — Description of the New LP Preferred Units”.
As expected the new issue is ranked in parity with all other preferreds and will become redeemable on 7/26/2026. Dividends will be paid on the 30th of 3,6,9,12–starting with a stub payment on 9/30/2021. All the details are in this document.
Brookfield Asset Management (BAM) has purchased Brookfield Property Partners LP (formerly BPY)–the deal closed yesterday.
As part of the deal BAM issued a new Brookfield Property Partners preferred was issued to BPY holders. The new issue has a coupon of 6.25% and is now (today) trading on NASDAQ under ticker BPYPM. All of the BPY preferred now outstanding remain trading–see them here.
I don’t have all the details on this new issue yet, but will post when I can ferret them all out. I think it is fair assumption to assume they are cumulative and likely rated BB+ by Standard and Poor’s (same as the other issues).
Thanks to the folks on the Reader Initiated Alerts page for the heads up.
Are these preferreds fully backed by BAM or are they on their own?
BPY credit. If it was a BAM credit it would be more like 4.5%.
Brokerage is not accepting orders for symbol. Have to call the bond desk.
I have a column for income received minus taxes, so I can quantify an actual real net yield. I believe the Canada withholding tax for US residents on this preferred is 15%. Can we get this back when filing for tax year?
In a retirement account, Canada doesn’t withhold anything. However given this is an L.P., even though it most likely doesn’t generate UBTI in a retirement account, I’m a little leery how this would get treated in the event of a position liquidation and that aggregate proceeds amount counting well beyond the UBTI limit.
I am under impression its Bermuda, not Canada, and there will not be a 15% withholding. The Bermuda Limited Partnership Act, under which New LP has been formed, does not impose statutory fiduciary duties on a general partner of a limited partnership in the same manner that certain corporate statutes, such as the OBCA, impose fiduciary duties on directors of a corporation. In general, under applicable Bermuda legislation, a general partner…….
What is 4.872% BPYPM per Schwab…
I think the sister issues are trading at a better price if this one is paying 4.872%
The distribution rate for the New LP Preferred Units will be 6.25% per annum of the $25.00 liquidation preference per unit (equal to $1.5625 per unit per annum). The distribution rate per annum may also increase by 5.00% in certain instances as described further in “Information Concerning New LP and the New LP Preferred Units — Description of the New LP Preferred Units”.
Thank you, Tim.
I picked up a bunch today. Would never have known it was trading without this place.
From digging through the link it looks like the 5% only happens in relation to not enough notice being given related to a change of control or delisting event.
Tough slog through that one so you guys might want to check for yourselves to see if I missed anything.
4.872% BPYPM per Schwab… is apparent misnaming. They have fixed it now –
The distribution rate for the New LP Preferred Units will be 6.25% per annum of the $25.00 liquidation preference per unit (equal to $1.5625 per unit per annum). The distribution rate per annum may also increase by 5.00% in certain instances as described further in “Information Concerning New LP and the New LP Preferred Units — Description of the New LP Preferred Units”.
The distribution rate for the New LP Preferred Units will be 6.25% per annum of the $25.00 liquidation preference per unit (equal to $1.5625 per unit per annum). The distribution rate per annum may also increase by 5.00% in certain instances as described further in “Information Concerning New LP and the New LP Preferred Units — Description of the New LP Preferred Units”.
I’m always confused by these. Do they issue K-1s or 1099s?
99% sure this is a K-1 or 5013 for the Toronto listed shares.
Are the TSX equivalents BOP? I don’t see a BPY in Canada.
What??? I didn’t see this. Hope to get an opening tomorrow.
If you prefer–it was issued to holders of the Brookfield Property Partners units–one of their choices on the merger. So it didn’t come to market the normal path. Fortunately we have sharp folks that picked up on it.