BRASCAN CORP - 8.30% Preferred Securities Due June 30, 2051 - To Be Posted For Trading on Friday, April 19, 2002
Toronto, Ontario, Apr 29, 2002 -- An application has been granted for the listing of 5,000,000 8.30% Preferred Securities due June 30. 2051 (the 'Preferred Securities') of Brascan Corporation ('Brascan"), each Preferred Security representing $25 principal amount of debt of Brascan.
$125,000,000 aggregate principal amount of Preferred Securities are to be distributed pursuant to the terms of a short form prospectus dated April 10, 2002. The closing of the underwriting is expected to occur prior to the opening on Friday, April 19, 2002. In anticipation of such closing, the Preferred Securities will be listed at 5:01 p.m. on April 18, 2002 and will be posted for trading at the opening on Friday, April 19, 2002.
The Preferred Securities will be listed and traded on the Exchange as an equity issue and will appear in the equity sections of the Daily Record and the Monthly Review. However, the Preferred Securities are debt obligations of Brascan. Consequently, quarterly distributions of interest (described below) will be treated for tax purposes as interest income. Additionally, because the Preferred Securities will be traded as an equity, accrued interest will be reflected in the quoted price and will be paid pursuant to record dates (more fully described below).
The Preferred Securities will at all times be represented by one or more global certificates issued in registered form to and held by The Canadian Depository for Securities Limited ('CDS'). Individual certificates for Preferred Securities will not be issued. Such securities must be purchased, transferred, sold and surrendered for redemption directly through a participant in the book based system of CDS.
Stock Symbol: BNN.PR.T; CUSIP: 10549P 87 9 Temporary Market Maker: T. England, Peters & Co. Limited Registrar: CIBC Mellon Trust Company at its principal office in Toronto. The following is a summary of some of the provisions of the Preferred Securities: Aggregate Principal Amount: $125,000,000 Maturity: June 30, 2051
Interest Payment Dates: March 31, June 30, September 30 and December 31 (each, an "Interest Payment Date") of each year in equal quarterly instalments of $0.51875 per Preferred Security, commencing June 30, 2002, subject to the right of Brascan to defer payment of interest (described below). Assuming an issue date of April 19, 2002, the first interest payment will be due on June 30, 2002 and would be in the amount of $0.4093 per Preferred Security. The relevant record date for the payment of interest, and therefore also the record date for trading purposes (the "Record Date") will be March 15, June 15, September 15 or December 15 in each year. In the event that any Interest Payment Date is not a business day, then the Interest Payment Date will be the next succeeding day that is a business day, except that, if such business day is in the next succeeding calendar year, then such Interest Payment Date shall be on the immediately preceding business day. If a Record Date is not a business day, then, for trading purposes, it is deemed to be the close of business on the business day immediately preceding the Record Date.
Brascan has the right to defer, at any time and from time to time, subject to certain conditions, payments of interest on the Preferred Securities by extending the interest payment period on the Preferred Securities for a period (each such period, an "Extension Period') of up to 20 consecutive quarterly periods provided that no Extension Period will occur beyond June 30, 2051. During an Extension Period, interest will accrue but will not compound.
Redemption: Except as described below, not redeemable prior to June 30, 2007. On or after June 30, 2007, redeemable in cash at the option of Brascan, in whole or in part, at any time and from time to time on not less than 30 days' and not more than 60 days' prior written notice at 100% of the principal amount of Preferred Securities to be redeemed plus accrued and unpaid interest thereon up to but excluding the date of redemption. In addition to the foregoing, redeemable at the option of Brascan, in whole but not in part, at any time following the occurrence of a Redemption Tax Event (as defined in the prospectus) on not less than 30 days' and not more than 60 days' prior written notice on a redemption date falling on or after the 91st day following the occurrence and during the continuation of a Redemption Tax Event if. within the 90 day period following such Redemption Tax Event, Brascan is unable to avoid the adverse effect of such Redemption Tax Event, at 100% of the principal amount thereof plus accrued and unpaid interest up to but excluding the date of redemption.
Subordination: The Preferred Securities will be issued as unsecured junior subordinated debt of Brascan. They are also effectively subordinate to claims of creditors of Brascan's subsidiaries except to the extent that Brascan is a creditor of such subsidiaries ranking at least pari passu with such other creditors.
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