Brookfield Infrastructure to Issue C$100 Million Preferred Units

Global infrastructure company Brookfield Infrastructure (NYSE: BIP; TSX: BIP.UN) has announced its intention to issue C$100 million worth of preferred units in the Canadian market. The company has entered into an agreement with a syndicate of underwriters for the issuance of 4,000,000 5.75% Cumulative Minimum Rate Reset Class A Preferred Limited Partnership Units, Series 19. This financing is intended to address Brookfield Infrastructure's general corporate needs.

The Series 19 Preferred Units will be issued by Brookfield Infrastructure L.P. (BILP), a subsidiary of Brookfield Infrastructure Partners L.P. (BIP), and will be fully and unconditionally guaranteed by BIP and BIPC Holdings Inc. Each unit will be offered to the public at a price of C$25.00. Holders of the units will be entitled to receive a cumulative quarterly fixed distribution at an annual rate of 5.75% for an initial period ending September 30, 2031. Thereafter, the distribution rate will be reset every five years to a rate equal to the greater of (i) the 5-year Government of Canada bond yield plus 2.35%, and (ii) 5.75%.

The offering is being conducted on a bought deal basis through a syndicate of underwriters led by Scotiabank, BMO Capital Markets, CIBC Capital Markets, National Bank of Canada Capital Markets, RBC Capital Markets, and TD Securities Inc. The underwriters have been granted an option, exercisable up to 48 hours prior to closing, to purchase up to an additional 2,000,000 Series 19 Preferred Units, which, if exercised, would increase the gross offering size to C$150 million. The units will be offered in all provinces and territories of Canada and are not for distribution in the United States.

This preferred unit offering is considered a strategic move by Brookfield Infrastructure to strengthen its capital structure and enhance its operational flexibility. The company is focused on generating predictable and stable cash flows from its contracted and regulated revenues. Such financing can contribute to the company's growth trajectory by supporting ongoing investment opportunities and meeting general working capital requirements.

Brookfield Infrastructure is a leading global infrastructure company that owns and operates high-quality, long-life assets in the utilities, transport, midstream, and data sectors across the Americas, Asia Pacific, and Europe. This issuance will enable the company to further solidify its extensive and diversified infrastructure portfolio. Moreover, preferred units of this nature offer shareholders a higher priority in the capital structure, potentially boosting confidence in the company's financial stability.

Market expectations suggest that the offering is anticipated to close on or about August 27, 2026. Analysts note that such preferred unit issuances provide companies with a stable source of funding, particularly in the current market environment. Given Brookfield Infrastructure's robust asset base and management expertise, this offering is expected to be successful and play a significant role in achieving the company's strategic objectives.