Brookfield Asset Management Inc.
) has announced the redemption price of 8.95% Notes worth the
principal amount of C$150 million. These notes will be redeemed
on Mar 6, 2013.
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These notes, with redemption price of C$1077.62, were scheduled
to mature on Jun 2, 2014. The notes are originally priced at
C$1,000. Therefore, an earlier redemption would give investors an
additional 8% benefit. The total redemption amount will also
include accrued and unpaid interest of C$23.37, thereby bringing
the total redemption price up to C$1100.99.
Over the past six months, Brookfield has been on a balance sheet
restructuring spree. In Jan, the company announced the issuance
of medium-term notes worth C$350 million, including C$175 million
of a re-opening of notes with a Mar 2023 maturity and C$175
million principal amount of a re-opening of notes maturing in Apr
Further, in Nov 2012, the company concluded the issuance of 4.85%
perpetual Class A Preference Shares, Series 36 worth C$200
million. In Oct 2012, the company announced redemption price of
C$350 million worth of 8.95% Notes.
Redemption of notes is a positive step for banks since it helps
bring down interest expenses. Further, a reduction in long-term
debt will go a long way in improving the overall financials of
Brookfield. For the fourth quarter of 2012, interest
expenses were $637 million, up 2.7% year over year.
Currently, Brookfield retains Zacks Rank #3 (Hold). Other asset
managers that are performing better than Brookfield include
AllianceBernstein Holding L.P.
Cohen & Steers Inc.
). All these carry the Zacks Rank #1 (Strong Buy) status.