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Financial Sector Update for 04/08/2015: BIP, BAM,GPN,CPTA

Top Financial Stocks

JPM +0.46%

BAC +1.20%

WFC -0.05%

C +0.76%

USB +0.12%

Financial stocks were mostly lower, with the NYSE Financial Sector Index dropping 0.9% and the S&P Financial 100 Index slipping 0.5%.

In company news, Brookfield Infrastructure Partners LP ( BIP ) declined Wednesday after the Canadian property manager priced a pair of equity offerings generating a combined $900 million, including an upsized $540 million public offering of 12 million limited partner equity units at $45 apiece.

The company and underwriters added an additional 3.1 million shares to the offering in response to strong investor demand, they said. The offering was structured as a bought deal, with a group of underwriters led by RBC Capital Markets initially buying the new units for later sale to institutional and individual investors.

In a related move, Brookfield Asset Management ( BAM ) today agreed to buy slightly more than 8.1 million redeemable partnership units from BIP at $45 apiece and adding another $364.5 million to the gross proceeds.

BIP common units were down slightly more than 2% at $44.84 each, earlier dropping to a session low of $44.46 a share. The stock has traded within a 52-week range of $36.66 to $46.95 a share, rising more than 17% over the past 12 months prior to Wednesday's slide.

BIP Toronto units also were lower, sinking almost 2% to C$56.12 at the Toronto Stock Exchange.

In other sector news,

(+) GPN, (+6.8%) Non-GAAP Q3 EPS of $1.14 per share beats Capital IQ consensus by $0.03 per share. GAAP revenue rises 7.9% from last year to $665 mln, trailing estimates by $3.74 mln. Also raises FY15 EPS outlook by $0.02 to a new range of $4.77 to 4.84 a share, in-line with $4.78 consensus. Accelerates $100 mln stock buyback.

(-) CPTA, (-5.0%) Prices $64.1 mln public offering of 3.5 mln shares at $18.32 apiece. Net proceeds will be used for new investments in portfolio companies and to repay existing debt.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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