Brascan Files Final Prospectus for Brascan Adjustable Rate Trust I
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NEWS
RELEASE
|
Brascan
Files Final Prospectus for
Brascan
Adjustable Rate Trust I
Toronto,
August 4, 2005
-
Brascan
Corporation (NYSE/TSX: BNN), announced the filing of the final prospectus
on
July 28, 2005 with the securities regulators in each of the provinces and
territories of Canada for the initial public offering of trust units of
the
Brascan Adjustable Rate Trust I (the “Fund”).
The
Fund
is intended to provide investors with a tax-efficient stream of monthly
cash
distributions and to preserve the net asset value of the Fund. The Fund
will
obtain exposure, through a forward agreement with a Canadian chartered
bank, to
the performance of an actively managed portfolio (the “Portfolio”) comprised of
at least 80% adjustable rate and hybrid mortgage backed securities (MBS)
with an
implied AAA rating issued or guaranteed by the U.S. government sponsored
enterprises commonly known as Ginnie Mae, Fannie Mae and Freddie Mac and
AAA-rated MBS issued by other financial institutions. Up to 20% of the
Portfolio
may be invested in investment grade residential and commercial MBS, as
well as
other investment grade ABS.
The
Trust
is offering its Units at a price of $25.00 per unit. Standard and Poor’s has
assigned the Units a rating of “AAf” on
its
global credit quality scale and P-1(High)
f”
on its
Canadian credit quality scale.
Distributions
are variable, but are targeted over the term of the Fund to approximate
the
average 10-year U.S. Treasury Note yield plus approximately 2.75%. The
10-year
U.S. Treasury Note yield was 4.27% as of July 27, 2005, which would result
in a
current target yield for the Fund of approximately 7.02% per annum.
Hyperion
Capital Management, Inc., a wholly owned subsidiary of Brascan, will be
responsible for making all investment decisions relating to the Portfolio.
Hyperion is a specialized U.S. manager in real estate fixed income securities
and relative value driven fixed income investment strategies to institutional
investors, including insurance companies, pension funds, financial institutions,
mutual funds and foundations as well as three closed-end NYSE-listed investment
funds listed on the New York Stock Exchange.
Brascan
Adjustable Rate Management Ltd., an indirect wholly-owned subsidiary of
Brascan
Corporation, will be responsible for the management of the Fund.
The
offering is co-led by RBC Capital Markets and CIBC World Markets Inc. and
includes a syndicate of investment dealers comprised of BMO Nesbitt Burns Inc.,
National Bank Financial Inc., Scotia Capital Inc., HSBC Securities (Canada)
Inc., Desjardin Securities Inc., Raymond James Ltd., Canaccord Capital Corp.,
Dundee Securities Corp., First Associates Investments Inc., Trilon Securities
Corp., Wellington West Capital Inc. A copy of the preliminary prospectus may
be
obtained through www.sedar.com.
Application
will be made to list the units of the Fund on the Toronto Stock Exchange
(“TSX”). The initial public offering is expected to close on August
16th.
*
* * * *
* *
Brascan
Corporation is
a
global asset manager focused on property, power and infrastructure assets.
With
$40 billion of assets under management, the company owns 70 premier office
properties and 130 power generating plants. The company is inter-listed on
the
New York and Toronto stock exchanges. For more information, please visit our
web
site at www.brascancorp.com.
For
further information please contact:
Mr.
Bruce
Robertson
Tel:
416-363-0061
Email:
brobertson@brascanam.com
Note:
This press release may contain “forward-looking statements” within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the
Securities Exchange Act of 1934, as amended. The words “believe”, “expect”,
“anticipate”, “intend”, “estimate” and other expressions which are predictions
of or indicate future events and trends and which do not relate to historical
matters identify forward looking statements. Reliance should not be placed
on
forward-looking statements because they involve known and unknown risks,
uncertainties and other factors, which may cause the actual results, performance
or achievements of the company to differ materially from anticipated future
results, performance or achievement expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ materially from
those set forward in the forward looking statements include general economic
conditions, interest rates, availability of equity and debt financing and other
risks detailed from time to time in the company’s 40-F filed with the Securities
and Exchange Commission. The company undertakes no obligation to publicly update
or revise any forward looking statements, whether as a result of new
information, future events or otherwise.