Brookfield Renewable Raises C$150M via 5.75% Preferred Unit Offering
BEP•Brookfield Renewable agreed to issue 6,000,000 5.75% cumulative Class A preferred units at C$25 apiece, raising C$150 million to fund green investments and repay related debt. Distributions yield 5.75% through July 31, 2031 and reset every five years at the higher of 5.75% or Canada bond yield plus 2.65%.
1. Series 19 Preferred Unit Offering
Brookfield Renewable will issue 6,000,000 Series 19 cumulative Class A preferred units at C$25 per unit on a bought-deal basis to a syndicate led by Scotiabank, BMO and others, raising C$150 million with an underwriter option to add 2,000,000 more units.
2. Distribution and Reclassification Features
Holders receive quarterly fixed distributions at an annual 5.75% rate until July 31, 2031; thereafter the rate resets every five years to the greater of 5.75% or the 5-year Government of Canada bond yield plus 2.65%. Series 19 units are redeemable on each reset date and may be converted into floating-rate Series 20 units under specified conditions.
