Brookfield Properties Corporation Agrees To Issue C$150 Million Of Preferred Shares.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 4, 2002 Brookfield Properties Corporation (NYSE NYSE See: New York Stock Exchange :BPO) (TSX:BPO) today announced that it has agreed to issue C$150 million of cumulative redeemable preferred shares denominated in Canadian dollars with a dividend rate of 6.00% to a syndicate of investment dealers led by CIBC World Markets CIBC World Markets is the investment banking division of the Canadian Imperial Bank of Commerce. It helps governments, large companies, and other large institutions obtain capital and credit and is a primary dealer in U.S. Treasury securities. . The preferred shares are rated Pfd-3 (high) by Dominion Bond Rating Service Dominion Bond Rating Service is a credit rating agency based in Toronto, Ontario. Founded in 1976, it is one of the largest credit rating agencies in Canada. It is one of five Nationally Recognized Statistical Rating Organizations in the United States, though significantly smaller (DBRS DBRS Dominion Bond Rating Service ) and P-3 (High) by Standard and Poors (S&P). Brookfield has extended to the underwriters the option until closing, to purchase up to an additional C$50 million of shares at the same offering price. Proceeds of the issue will be used to retire $150 million of Canadian dollar denominated Class AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. preferred shares currently outstanding with a dividend rate of 9.00%, continuing Brookfield's drive to lower its weighted average cost of capital Weighted average cost of capital (WACC) Expected return on a portfolio of all a firm's securities. Used as a hurdle rate for capital investment. Often the weighted average of the cost of equity and the cost of debt The weights are determined by the relative proportions of equity for common shareholders. Closing is expected to occur on or about September 25, 2002. The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement of such Act. This release does not constitute an offer for sale of securities in the U.S. and any public offering of securities in the U.S. will be made by means of a prospectus. Brookfield Properties Corporation, with a stock market value of over US$9 billion, owns, develops and manages premier North American office properties. The Brookfield portfolio includes 50 commercial properties and development sites totaling 44 million square feet and over 120 million square feet of space under management. Brookfield is inter-listed on the New York and Toronto Stock Exchanges under the symbol BPO. For more information, visit the Brookfield Properties website at www.brookfieldproperties.com. |
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