OTTAWA (dpa-AFX) - Brookfield Infrastructure Partners L.P. (BIP, BIP_UN.TO) announced that it has agreed to issue approximately 14.1 million L.P. units, on a bought deal basis, to a syndicate of underwriters at a price of US$24.75 per L.P. unit for aggregate gross proceeds of US$350 million.
In addition, Brookfield Asset Management Inc. (BAM) will purchase directly or indirectly 6.1 million redeemable partnership units of Brookfield Infrastructure's holding limited partnership or RPUs at the offering price concurrent with the proposed public offering in order to maintain its approximate 30% interest in Brookfield Infrastructure on a fully exchanged basis.
The aggregate gross proceeds of the Offering and the placement to Brookfield Asset will be approximately US$500 million. The Offering is expected to close on or about October 26, 2011.
Brookfield Infrastructure noted that it has granted the underwriters an over-allotment option, exercisable in whole or in part for a period of 30 days following closing, to purchase from it up to an additional 2.1 million L.P. units at the Offering Price, which, if exercised, would increase the gross Offering size to US$403 million. If the underwriters exercise the over-allotment option, Brookfield Asset will have the option to purchase additional RPUs in order to maintain its approximate 30% interest in Brookfield Infrastructure on a fully exchanged basis.
Brookfield Infrastructure stated that proceeds of approximately US$150 million will be used to acquire interests in two Chilean toll roads and proceeds of approximately US$150 million will be used to fund growth capital expenditures at Brookfield Infrastructure's Australian railroad.
The remaining proceeds will be used to pay down the corporate credit facility, which has been drawn over the past nine months to invest in Brookfield Infrastructure's Australian railroad and other organic growth initiatives, Brookfield Infrastructure said.
A Brookfield consortium recently committed to acquire a controlling interest in two operating Chilean toll roads in a transaction with an equity investment and proportionate enterprise value of approximately US$340 million and US$760 million, respectively.
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