Brookfield prices upsized $1 billion notes; ConnectOne to sell fixed-rate notes due 2028

By Devika Patel

Knoxville, Tenn., Jan. 11 – Thursday saw one new primary deal price, with Toronto-based alternative asset manager Brookfield Asset Management Inc. subsidiary Brookfield Finance Inc. pricing an upsized $1 billion of guaranteed senior notes in two parts, including an add-on.

Also, Englewood Cliffs, N.J., bank holding company ConnectOne Bancorp, Inc. reported that it will sell fixed-to-floating rate subordinated notes due 2028.

Brookfield upsized deal

Brookfield priced a $1 billion offering of senior notes (Baa2/A-/DBRS: A) in two tranches, including an add-on to its 4.7% notes due Sept. 20, 2047 on Thursday.

The issuer initially planned to sell $750 million of the notes.

Brookfield sold $650 million of 3.9% notes at a spread of Treasuries plus 140 basis points. These notes priced at 99.654 to yield 3.942%.

The company also sold $350 million of 4.7% notes at a 170-bps spread over Treasuries. These notes priced at 101.963 to yield 4.577%.

Brookfield sold $550 million of the 4.7% notes on Sept. 11 in a deal that settled on Sept. 14. The notes were priced at 99.219 to yield 4.749% with a spread of 200 bps over Treasuries.

Deutsche Bank Securities Inc. and BofA Merrill Lynch are the joint bookrunners.

Brookfield will use the proceeds from the notes for general corporate purposes.

The notes will be guaranteed by Brookfield Asset Management, a Toronto-based alternative asset manager with about $250 billion of assets under management.

ConnectOne planned notes

The ConnectOne notes due 2028 will bear interest at a fixed rate until 2023 and then at a rate based on Libor.

The ConnectOne notes are non-callable for the first five years and may be redeemed at par plus interest after that.

Keefe, Bruyette & Woods, a Stifel Co., is the bookrunner, and Piper Jaffray & Co. and Raymond James & Associates are the co-managers.

Proceeds will be used for ConnectOne’s general corporate purposes, including growth, organically or through acquisitions, debt repayment and investments and capital expenditures.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.