Preliminary Prospectus Filed for $450 Million Base Public Offering
Concurrent $450 Million Placement to Brookfield Asset Management
Brookfield Properties Corporation (BPO: NYSE, TSX) today announced that
it has filed a registration statement on Form F-10 with the United
States Securities and Exchange Commission, and a preliminary short form
prospectus with the securities regulatory authorities in all provinces
of Canada, in connection with a proposed public offering. It is
anticipated that the company will issue to the public approximately
US$450 million in common shares and grant the underwriters the option to
purchase up to an additional 15% of the base offering size. Brookfield
Asset Management (BAM: NYSE, TSX), which currently has an approximate
voting interest in Brookfield Properties of 51%, intends to purchase
common shares from Brookfield Properties concurrent with the proposed
public offering in order to maintain its voting interest.
The proceeds from this offering will be used for general corporate
purposes, including without limitation, the refinancing of indebtedness
and investment purposes.
RBC Capital Markets, Citi, Deutsche Bank Securities and TD Securities
will act as joint book-running managers and underwriters for the
proposed public offering. The final terms of this offering will be
determined by negotiation between Brookfield Properties and the
underwriters at the time of pricing which is expected to occur tomorrow.
A written prospectus relating to the offering may be obtained from RBC
Capital Markets in Canada, Attention: Distribution Centre, 277 Front St.
W., 5th Floor, Toronto, Ontario M5V 2X4 (fax: 416-313-6066);
or in the U.S. from RBC Capital Markets Corporation, Attention:
Prospectus Department, Three World Financial Center, 200 Vesey Street, 8th
Floor, New York, NY 10281-8098 (fax: 212-428-6260).
The Form F-10 registration statement relating to the common shares has
not yet become effective. The common shares to be issued under this
offering may not be sold, nor may offers to buy be accepted prior to the
time the registration statement becomes effective. Similarly, these
common shares may not be sold in Canada until a receipt for a final
prospectus is obtained.
