TORONTO, December 10, 2010 – BAM Split Corp. (the “Company”) today announced the completion of its previously announced issue of 5,000,000 Class AA Preferred Shares, Series 5 (the “Series 5 Preferred Shares”) at an offering price of $25.00 per Series 5 Preferred Share, raising gross proceeds of $125,000,000. The Series 5 Preferred Shares carry quarterly fixed cumulative preferential dividends representing a 4.85% annualized yield on the offering price and have a final maturity of December 10, 2017. The Series 5 Preferred Shares have been listed and posted for trading on the Toronto Stock Exchange under the symbol BNA.PR.E. The net proceeds of the offering will be used to pay a special cash dividend to holders of the Company’s Capital Shares.
Prior to the closing of the offering, the Company subdivided the existing Capital Shares held by BAM Investments so that there are an equal number of Preferred Shares and Capital Shares outstanding.
The Company owns a portfolio consisting of 53,160,644 Class A Limited Voting Shares of Brookfield Asset Management Inc. (the “Brookfield Shares”) which is expected to yield quarterly dividends that are sufficient to fund quarterly fixed cumulative preferential dividends for the holders of the Company's Preferred Shares and to enable the holders of the Company's Capital Shares to participate in any capital appreciation of the Brookfield Shares. Brookfield, focused on property, renewable power and infrastructure assets, has over U.S.$100 billion of assets under management and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and Euronext under the symbol BAMA.
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Derek E. Gorgi, Chief Financial Officer, will be available at (416) 359-8590 to answer any questions regarding the offering.
This news release contains "forward-looking information" within the meaning of Canadian provincial securities laws and regulations. The words "expected", "will", "agreed" and "enable" and other expressions are predictions of or indicate future events, trends or prospects and do not relate to historical matters or identify forward-looking information. Forwardlooking information in this news release includes statements with regard to the use of proceeds of the offering, postoffering transactions between the Company and BAM Investments and quarterly dividends from the company's portfolio of Brookfield Shares which are expected to fund quarterly fixed cumulative preferential dividends for holders of the company's Preferred Shares and to enable holders of its Capital Shares to participate in any capital appreciation of the Brookfield Shares. Although the Company believes that the anticipated future results or achievements expressed or implied by the forward-looking information and statements are based upon reasonable assumptions and expectations, the reader should not place undue reliance on the forward-looking information and 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 information and statements. Factors that could cause actual results to differ materially.