investorhub123
11 years ago
Canadian hockey hero Lanny McDonald heading shareholder fight
http://www.theglobeandmail.com/report-on-business/industry-news/the-law-page/hockey-hero-heading-shareholder-fight/article18993675/
Former NHL star Lanny McDonald knows that he is in for a glove-dropping fight – and his team is the underdog.
Mr. McDonald and his trademark mustache have long since retired from the hockey rink, where he won a Stanley Cup with the Calgary Flames in 1989.
But now, he is lacing up to lead a shareholder battle on behalf of himself and hundreds of other investors who together lost millions in a company called Birch Mountain Resources Ltd.
They allege their company’s key asset, a limestone quarry they say was worth an estimated $1.6-billion, ended up in the hands of a subsidiary of one of Canada’s corporate giants, Brookfield Asset Management Inc., for less than $50-million back in 2008. Shareholders received nothing.
In their recently revived proposed class-action lawsuit, the investors allege Brookfield used “oppressive” and “misleading” tactics to force the company into receivership and grab the quarry, which is located in the heart of Alberta’s oil sands. None of the allegations have been proven in court, and the lawsuit needs to be certified by a judge before it can proceed as a class action on behalf of investors.
“This is about fairness,” said Mr. McDonald, who was an independent board member of the now-defunct company. “This is about playing by the rules.”
He is now the main plaintiff for the lawsuit, which was thrown out of Ontario’s courts on jurisdictional grounds in 2011 and has just been filed again in Alberta.
Andrew Willis, Brookfield’s senior vice-president of communications and media, said the case was baseless.
“The case has absolutely no merit,” Mr. Willis said. “... We look forward to defending it in court.”
Back in 2002, Birch Mountain’s founders discovered a potentially profitable limestone deposit in the middle of Alberta’s oil sands, where the rock can be used in roads and for filtering emissions and water. Mr. McDonald got involved after coaching hockey with the chief executive officer. As the project grew over the next several years, the company sought financing from Tricap Partners Ltd., a subsidiary of Brookfield now called Brookfield Special Situations Partners Ltd.
But in 2008, Birch Mountain ran into financial problems as oil sands development slowed. According to the statement of claim filed in court, Birch Mountain violated some of the financial terms of its deal with Tricap, its senior lender with a $31.5-million debenture that could be converted into shares.
According to other court documents, efforts to sell the quarry to cover the company’s debts had failed. In November, Tricap pushed Birch Mountain into what the statement of claim alleges was a “contrived receivership,” despite what shareholders say were improving financial results. The quarry ended up transferred to a numbered company owned by Brookfield and now called Hammerstone Corp.
According to the statement of claim, the investors allege that Brookfield engaged in “negligent misrepresentation,” as Tricap sold itself as an investor that would provide “long term patient capital” and help companies “experiencing financial difficulty” such as Birch Mountain.
Instead, the claim alleges, Brookfield manipulated Birch Mountain’s stock through “death spiral stock trading,” driving it down to just a penny. However, the lawsuit provides no evidence that Brookfield was actually behind the trading.
Using debentures and “death spiral stock trading” to obtain control of a distressed company instead of mounting a takeover bid is a common technique, said Wanda Bond, a self-described shareholder activist who along with her Florida-based partner James Currie has been working on the case with a group of fellow Birch Mountain investors.
“This is a back door-practice, under the guise of being a white knight,” said Ms. Bond, who was herself the case’s named plaintiff when it was originally filed in Ontario. “And there’s nobody stopping this sort of thing.”
Mr. McDonald, who played for the Toronto Maple Leafs and the Colorado Rockies before signing with the Flames, is under no illusion that challenging Brookfield in this case will be easy. But he says some of his experiences along the boards of the National Hockey League have given him the strength to persevere against lopsided odds.
“When you played for the Colorado Rockies and you are mathematically eliminated from the playoffs at the end of October, it’s a little tough to get up for the rest of the year, but you find a way to do that,” he said. “Just like it’s your responsibility to find a way to stand up in this case and … fight for the little guy.”
Follow Jeff Gray on Twitter: @jeffreybgray
dbleagl
14 years ago
Shareholders Seeking Justice Launch Blog-Site to Educate Shareholders and Capital Markets About $2 Billion Class Action Lawsuit Against Brookfield Asset Management
TORONTO, ONTARIO -- (Marketwire) -- 03/23/11 -- Shareholders seeking Justice announce that they have recently launched a blog site (http://jimymac.blogs.com/shareholdersforjustice/) dedicated to educating the investing public about a class action lawsuit filed against Brookfield Asset Management. The lawsuit challenges the acquisition and transfer of a $2 billion asset from a public company, Birch Mountain Resources, to a private company, the Hammerstone Corporation, a subsidiary of Brookfield Special Situations Group (formerly Tricap).
A Birch Mountain shareholder group allege that their rights were usurped using oppressive and questionable methods through which the acquisition and transfer was accomplished for virtually pennies on the dollar relative to the asset's quantified and appraised value.
The newly launched blog site will remain an independent voice seeking resolution, restitution, and recovery for Birch Mountain shareholders who suffered significant financial losses. The site will include public information and legal documentation links about the lawsuit.
A separate website (Birch Mountain Class Action), yet to be launched by the attorneys, will deal with legal documentation and case status.
For anyone wishing to attend the first hearing for motion of jurisdiction it will take place on April 20, 2011 at 10:00 am at Osgoode Hall, 130 Queen Street West, Toronto, Ontario. It will be heard in open court. The specific courtroom number will be posted at the courthouse entrance on the day of the motion.
You are invited to visit: http://jimymac.blogs.com/shareholdersforjustice/
Contacts:
Champion Stakeholders, LLC
birchmountain@hushmail.com
P.O. Box 783938
Winter Garden, FL 34786
Read more: http://financial.businessinsider.com/siliconalleymedia.clusterstock/news/read?GUID=17912469#ixzz1HU8eSCim
Read more: http://financial.businessinsider.com/siliconalleymedia.clusterstock/news/read?GUID=17912469#ixzz1HU86QxgU
Rayhuh
14 years ago
Article on 3rd quarter results
http://ca.news.yahoo.com/s/capress/101105/business/brookfield_asset_management
Brookfield Asset Management reports US$342 million profit in thrid quarter
43 minutes ago
By The Canadian PressADVERTISEMENT
TORONTO - Brookfield Asset Management Inc. (TSX: BAM) says its third-quarter profit has rebounded compared to a year ago when it booked a huge writedown under new reporting standards.
The Toronto-based asset management company — which reports in U.S. dollars and now uses the International Financial Reporting Standard — says it earned US$342 million, or 16 cents per share in the quarter ended Sept. 30.
That was up from a loss of US$572 million, or 75 cents per share in the year earlier when it booked a US$873 million charge due to a writedown on its office properties.
Brookfield's revenue was US$3.8 billion, up from US$2.8 billion a year ago.
Net income prior to other items, which include depreciation charges, fair value changes and future income taxes, was $625 million compared to $285 million in the year earlier.
Brookfield says its stronger results were driven by high occupancy rates at its commercial office properties and improved leasing markets.
“Recent investments and several major initiatives combined with organic growth in our existing operations have set the stage for Brookfield to build on our franchise and continue to create significant shareholder value,” said Bruce Flatt, CEO of Brookfield.
“We believe that as the global economy continues to recover, the company is well positioned for long-term, sustainable growth across all of our sectors.”
Brookfield has said that it is thriving in an uncertain economic environment and will continue to use its financial heft as a competitive advantage to close major deals with long-term investment potential.
It has been able to capitalize on companies in distress, including a significant investment in an office property in Washington, D.C., and its investment in General Growth Properties, a U.S. mall owner that is expected to come out of bankruptcy court with 180 properties.
Brookfield said Friday that it will own a 30 per cent stake in General Growth when it emerges from bankruptcy.
The Toronto-based conglomerate, which has a number of publicly traded subsidiaries, announced in August that it would divest some of its commercial properties to publicly traded subsidiary Brookfield Office Properties (TSX:BPO).
Other companies within the Brookfield group include: Brookfield Homes Corp. (NYSE:BHS), Brookfield Renewable Power Inc. (TSX:BRC.UN), Fraser Papers Inc. (TSX:FPS), wood panel producer Norbord Inc. (TSX:NBD), and Great Lakes Hydro Income Fund (TSX:GLH.UN),
Brookfield Asset Management has over $100 billion of assets under management and over 15,000 employees through a number of subsidiaries, many of them publicly traded in their own right.
Investorman
14 years ago
6 Dividend Companies with Huge Economic Moats
An important aspect of long-term dividend investing is identifying companies that have durable economic advantages that allow them to remain profitable for the foreseeable future. For the dividend growth strategy to work, time is needed, and lots of it.
Company economic advantages are often called “economic moats”, because they act as a durable defense to separate the company from its competitors. Companies that do not have moats face a lot more pressure from competitors, while companies with large moats have better chances for higher margins and bigger profits along with consistent growth. This article highlights 7 companies with superior moats.
Canadian National Railway (CNI)
Canadian National Railway is the largest railway in Canada and has significant operations in the United States. The rail network extends from the Atlantic Ocean to the Pacific Ocean through Canada, and also extends southward to the Gulf of Mexico through the United States.
Railways have big economic advantages because once track is put down, there’s little reason for a competitor to put down track in the same area to serve the same routes. A railway’s biggest concern is the economic trends in the areas it serves, rather than fierce competition from other railways. Railways also tend to be very efficient compared to other forms of transportation, particularly when transporting large amounts of commodities.
Canadian National Railway’s dividend yield is currently only 1.60%, but the dividend growth is high. The last increase was 7%, and the five-year dividend growth rate is 17%.
Wal-Mart (WMT)
Wal-Mart is the biggest, baddest retailer around. The company pulls in over $400 billion per year in revenue. When it purchasesproducts to sell, it purchases so many at a time, that it can demand pretty much any price it wants. Simply by being so huge, it can buy products cheaper than any of its competitors, and therefore can sell at a lower price while simultaneously having an excellent profit margin compared to other retailers. Since it sells at a lower price, everyone flocks to Wal-Mart to buy things, and the retailer gets even bigger, continuing to dominate its competitors. It’s a cycle.
How would a retailer go about trying to compete with Wal-Mart? A given competing retailer isn’t big enough in terms of purchasing power to match Wal-Mart’s prices, so people shop at Wal-Mart instead. Since people shop at Wal-Mart instead, this competing retailer does not grow very quickly, and so they can never outpace Wal-Mart in terms of purchasing power. It’s a catch-22. It’s like not being able to get a job because you don’t have enough experience, and not having enough experience because you can’t get a job.
Most economic moats are viable because they form an endless cycle; a catch-22 against competitors. Wal-Mart offers a dividend yield of 2.20% with a five-year dividend growth rate of 15%. Costco (COST) and Amazon (AMZN) have been innovative enough to chip away at the moat, but Wal-Mart’s current valuation and continued growth offer considerable upside and a fairly low downside.
Johnson and Johnson (JNJ)
Johnson and Johnson has a moat made up of two things: a) Scientific know-how and patents, and b) A collection of strong brand names.
When healthcare companies develop a new medicine or a new product, they patent it, and this stops companies from producing similar products. This allows the company to charge high prices. With the vast size of the company, JNJ has the vast technical know-how to continue to research and develop new products, and to patent them against competitors. At any given time, Johnson and Johnson has a huge patent shield in diverse categories, and it has a healthy pipeline of new products coming out to be patented.
In addition, Johnson and Johnson’s collection of brands are well-known. Its consumer products can sell for 2x as much as an exact non-brand name copy of the formula because people tend to buy it anyway. This patent-shield-wielding juggernaut offers a 3.40% yield and more than 10% annualized dividend growth over the past five years.
Brookfield Infrastructure (BIP)
Just about any utility company or pipeline has a large economic moat due to the local monopoly they have on their communities. A utility or pipeline invests in a large amount of assets that return a stable cash flow over time, and nearly untouched by competitors.
I picked BIP in particular because its operations are global, and I wanted to point out that a company with a huge moat does not have to be a huge company. BIP has ownership or partial ownership of the following:
Utilities:
Transelec- Electric transmission lines in Chile
NGPL- Natural gas storage and pipeline in the US
Powerco- Electricity and gas distribution in New Zealand
IEG- Electricity and natural gas connections in UK
Ontario Transmission- Electric transmission lines in Canada
TGN- The only natural gas distributor in Tasmania
Transportation:
DBCT- Coal terminal that supplies port export services from Australia
WestNet Rail- Australian rail infrastructure
PD Ports- Collection of shipping ports in UK
Euroports- Ports in Europe and China
Timber:
Island Timberlands- timberland in British Columbia
Longview Timber- timberland in Northwestern US
Social Infrastructure:
Peterborough Hospital- UK hospital
Long Bay Forensic and Prison Hospitals- Australian hospital
Royal Melbourne Showgrounds- Exhibition Center in Australia
BIP offers a yield of 5.50% and their last distribution raise was nearly 4%. Looking forward, BIP management hopes to boost the distribution by 3-7% per year. Still, their leveraged position and exposure to cyclical infrastructure should be carefully considered.
United Parcel Service (UPS)
UPS is a logistics company that is strong mainly because of its massive scale. It has an international distribution system that allows it to ship packages all over the world. The company uses hundreds of planes and thousands of vehicles to ship millions of packages each day.
Unlike a retailer, however, one can barely even start a business in this field. The barrier to entry is massive. One can’t start a delivery service without an enormous capital investment, and there’s no reason to even try because UPS is large enough to do it better and cheaper than you no matter where you start it. This keeps the number of players in this industry fairly low.
UPS offers a dividend yield of 2.80% and 7% dividend growth.
Microsoft (MSFT)
Usually, large companies with strong moats tend to have an equally famous brand name, but this is certainly not the case for Microsoft. In fact, its brand name is infamous for crashing PCs, buggy software, inferior updates, and annoying paperclips. Although it’s true that everyone knows Microsoft, almost everyone has something negative to say about Microsoft, and yet we still use the company's products. Why? Because Microsoft's moat is just absolutely huge.
The strength of its moat comes in the form of high switching costs. It’s difficult to switch to one of its competitors even if you want to. Everyone is familiar with Windows, but not everyone is familiar with Apple (AAPL) products or Linux. Windows has a huge percentage of the PC software market share. Even more powerful in terms of switching cost is Microsoft Office. Nobody can switch, because unless a large portion of the market switches at the same time, nobody will be able to read the documents of the people that switched first. There are even entire training and licensing programs about learning and becoming certified in Microsoft Office usage.
Microsoft currently offers a dividend yield of 2.60% and has grown its dividend by an annualized 10% over the past five years. The danger, however, is that Microsoft’s epic moat may be matched by the speed in which it is crumbling away. Innovative companies like Google (GOOG) and Apple are stealing its market share, and online document software threatens the future of the Microsoft Office model.
Summary
A moat isn’t everything, and some of these companies have pretty substantial threats to their economic advantages. Google and Apple are attacking Microsoft, Amazon and Costco are attacking Wal-Mart, UPS has Fed Ex (FDX) and a union to deal with, Johnson and Johnson is letting its collection of brands receive bad press with poor quality, and BIP, CNI, and all of them are affected by what the global economy is like at any given time.
But these aren’t just any old moats; they’re some of the biggest around, and the companies skillful enough to put up these moats might be good enough to keep them. Companies with huge moats don’t go away overnight, and if their valuations are reasonable, they may make solid investments. A thorough analysis should be performed on any stock before investing.
Investorman
14 years ago
Brookfield Properties Announces Plan to Become a Pure-Play Office Company Acquiring Interest in High-Quality Australian Office Portfolio;
Residential Land and Housing Business to be Divested;
Company to be Renamed Brookfield Office Properties
NEW YORK--(BUSINESS WIRE)--Brookfield Properties Corporation (BPO: NYSE, TSX) today announced a strategic repositioning plan to transform itself into a global pure-play office property company. The plan includes the acquisition of an interest in a significant portfolio of premier office properties in Australia from Brookfield Asset Management (BAM: NYSE, TSX, Euronext) as well as the divestment of Brookfield Properties’ residential land and housing business.
“This strategy will position Brookfield Properties at the forefront of the global office property scene,” stated Ric Clark, president and chief executive officer of Brookfield Properties Corporation. “Expanding internationally to dynamic gateway cities such as Sydney, Melbourne and Perth, Australia, with similar characteristics to our current North American markets, provides great operational synergies.”
Clark added: “Given its rich resource base and strong trading relationship with the world’s fastest growing economies, investment in Australia should put Brookfield Properties in a strong position to experience meaningful growth as the global economies emerge from the economic downturn. Following these transactions, Brookfield Properties will have leading office portfolios in each of the United States, Canada and Australia, as well as a modest but growing interest in the United Kingdom, transforming Brookfield Properties into the global security for investors looking for ownership in premier office assets.”
Australia Office Transaction
Brookfield Properties has agreed to enter into a transaction with Brookfield Asset Management whereby Brookfield Properties will pay Brookfield Asset Management A$1.6 billion (US$1.4 billion) for an interest in 16 premier Australian office properties comprising 8 million square feet in Sydney, Melbourne and Perth which are 99% leased. The properties have a total value of A$3.8 billion (US$3.4 billion).
Brookfield Properties’ board of directors established an independent committee to assess the transaction. The committee retained Morgan Stanley & Co., Incorporated as its financial advisor. The independent committee unanimously recommended that the board of directors approve the proposed transaction.
This transaction is expected to be completed in the third quarter of 2010 following the receipt of third party consents and approvals.
Brookfield Properties will fund the transaction from available liquidity of US$1.3 billion and from a US$750 million subordinate bridge acquisition facility from Brookfield Asset Management, which will be repaid from the completion of some or all of the following: asset sales, including a sell down of Brookfield Properties’ equity interest in its publicly-listed company Brookfield Office Properties Canada (TSX: BOX.UN - News), or other financing or capital activities.
A supplemental information package relating to this transaction is available on Brookfield Properties’ website at www.brookfieldproperties.com.
Residential Operations Disposition
As a further step in the strategy of converting Brookfield Properties into a global pure play office company, the company announced that it intends to divest of its residential land and housing division. To this end, Brookfield Properties intends to commence discussions with Brookfield Homes Corporation (NYSE: BHS - News) regarding the possible merger of these operations with Brookfield Homes. Should the merger proceed, Brookfield Properties’ equity interest in the residential business would be converted into a listed security in the merged entity which Brookfield Properties would then dispose of through an offering to its shareholders. Brookfield Asset Management would commit to acquire any shares of the merged entity that are not otherwise subscribed for in the offering, thereby ensuring that Brookfield Properties will successfully dispose of its residential interests and receive full proceeds.
The above transaction would complete Brookfield Properties’ process of divesting of its residential land and housing business that commenced with the initial creation and distribution of Brookfield Homes in 2003. At the time, the current, largely Canadian business was relatively small and therefore retained within Brookfield Properties. Since that time, the operation has grown substantially and Brookfield Properties now believes that it is appropriate to separate the businesses, serving the dual purpose of furthering the strategic repositioning of Brookfield Properties and enhancing the value of the residential business through the creation of a diversified North American residential land and housing company.
Brookfield Homes, listed on the New York Stock Exchange with a market capitalization of approximately US$500 million, is a land developer and home builder focused primarily in California and the Washington, DC area markets. Brookfield Asset Management is the owner of approximately 82% of Brookfield Homes. Brookfield Asset Management has advised that it is supportive of the merger discussions. Any transaction would be subject to review by Brookfield Properties’ independent committee.
Name Change
To reflect this strategic repositioning, Brookfield Properties Corporation will begin operating immediately under the name “Brookfield Office Properties” and intends to seek approval at its next shareholder meeting to change its name to “Brookfield Office Properties Inc.” The company’s shares will continue to trade under the ticker symbol BPO on the New York and Toronto Stock Exchanges.
Brookfield Properties Profile
Brookfield Properties owns, develops and manages premier office properties. Its current portfolio is comprised of interests in 93 properties totaling 70 million square feet in the downtown cores of New York, Washington, D.C., Houston, Los Angeles, Toronto, Calgary and Ottawa, making it one of the largest owners of commercial real estate in North America. Landmark assets include the World Financial Center in Manhattan, Brookfield Place in Toronto, Bank of America Plaza in Los Angeles and Bankers Hall in Calgary. The company’s common shares trade on the NYSE and TSX under the symbol BPO. For more information, visit www.brookfieldproperties.com.
Brookfield Asset Management Profile
Brookfield Asset Management, focused on property, renewable power and infrastructure assets, has over $100 billion of assets under management and is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and on NYSE Euronext under the symbol BAMA. For more information, please visit our website at www.brookfield.com
Investorman
15 years ago
Brookfield Infrastructure Update on Chilean Transmission Operations
Monday March 1, 2010, 10:02 am EST
HAMILTON, BERMUDA--(Marketwire - 03/01/10) - Brookfield Infrastructure Partners L.P. (the "Partnership", along with its related entities, "Brookfield Infrastructure") (TSX:BIP.UN - News)(NYSE:BIP - News) provided the following update today. "We have received a preliminary status report from our Chilean transmission operations, Transelec, which owns Chile's trunk transmission system. We are grateful to have been advised by senior management that there has been no loss of life by our personnel or their families", said Sam Pollock, Chief Executive Officer, Brookfield Infrastructure.
"In addition, as a result of Transelec's successful implementation of its emergency response procedures, all delivery points served by Transelec have had their basic electricity service restored. Early assessments indicate that the transmission towers have been largely unaffected; however, several substations incurred some damage from the effects of Saturday's earthquake. Further evaluation of the network is being undertaken. We will endeavour to provide updates as the assessment progresses. We offer our support to the people of Chile during this difficult time", concluded Pollock.
Investorman
15 years ago
Brookfield Real Estate Opportunity Fund Announces Acquisition of 16-Property, 2.9-Million Sq. Ft. Portfolio from JPMorgan Chase
February 11, 2010 5:26 PM
Brookfield Real Estate Opportunity Fund ("BREOF"), a group of funds sponsored by Brookfield Asset Management (TSX: BAM.A)(NYSE: BAM)(EURONEXT: BAMA), is pleased to announce to the acquisition of a 16-property, 2.9-million square foot portfolio from JPMorgan Chase. As part of the transaction, JPMorgan Chase is leasing back approximately 60% of the space in the portfolio on a long-term basis. The Bank was represented in the transaction by Houlihan Lokey and by J.P. Morgan Real Estate Advisors, Inc.
Including this transaction, BREOF has acquired over 100 properties, containing approximately 12 million square feet of space from JP Morgan Chase over the last 4 years. "We are excited about the opportunity to add significant value to the portfolio and are proud of our strong relationship with the Bank," said David Arthur, the Fund's President and Managing Partner.
The Portfolio includes four properties, located in Dallas, Tampa and Columbus that are 100% net-leased to JPMorgan Chase. The other properties are located throughout the country and include two meaningful value-add opportunities: an 800,000-square foot office tower in Houston, Texas and a 650,000-square foot office campus/data center site in Whippany, New Jersey.
The Brookfield Real Estate Opportunity Fund invests and manages two funds with $1.8 billion of assets composed of approximately 16 million square feet of commercial office, industrial and multi-family residential properties.
Brookfield Asset Management Inc. has over $90 billion of assets under management in the property, renewable power and infrastructure sectors. For more information, please visit the company's web site at www.brookfield.com.
Rayhuh
15 years ago
Increasing debt, due soon, problem for BAM's growth?
Hi everyone,
I posted this message on the yahoo board after I read through tons of posts by a user regarding BAM.
The bottom line is: Lots of BAM's debt is coming due soon and even with the low interest rates, they had to take worse terms in previous refinancings. My message was this, any comments welcome:
------------------------------------
Hi Ben,
I really appreciate your input and hard work you put in your deep analysis. Thank you for that!
To be honest, most of your findings are either too complex for me or would take too much time to verify myself. Your points make sense, a lot of debt coming due, higher cost of debt, complicated corporate structure and so on.
Well, it was clear that BAM would suffer with their amount of leverage in these stormy times. Only a few companies have come out stronger than before. For me, it all comes down to the simple question, whether or not they will be able to grow their business in the future or not. One could argue that now with the low interest rates, the restructuring of debt could 'easily' be achievable, but who knows. The support from institutional investors is still huge, as can be seen in their recent funds they collected. On the one hand, I see what Brookfield says, growing op. Cashflow, stable long term-assets, on the other hand I see your findings, e.g. the comparison you put together.
So, to bring my basic question back up: Do you think that in spite of the problems that BAM is facing, it cant grow more or the actual stock price is too high?
Thank you very much in advance
-----------------
2nd message:
I remembered an older debt-refinancing of Brookfield Power, which rang my alarm bells for the first time back then:
>sell an aggregate C$300 million of Series 6 notes due November 30, 2016. The notes will bear interest at a rate of 6.132% per annum, payable semi-annually. <<
>>Net proceeds will be used to repay the remaining C$280 million of the Company’s 4.65% Series 1 notes due December 16, 2009 and for general corporate purposes<<
Even with the low interest rates, the new financing had worse terms than the previous (+1,5%). So you should be right, that the debt coming due could pose a problem. Probably only a minor one as there will surely be some big institutional holders to bail them out but one that could impact future earnings and growth nonetheless.
As my position in Brookfield was meant to be a stable fundament, I might switch to Fairfax Financial, which has weathered the crisis very well and seems valued fairly. I also own Markel, both share impressive long-term growth.
Investorman
15 years ago
Brookfield Infrastructure Partners Announces Year-End 2009 Results
Quarterly Distribution Increased by 3.8% to US$0.275 per Unit
.Companies:Brookfield Infrastructure Partners L.P.Brookfield Infra Partners L.P..Press Release Source: Brookfield Infrastructure Partners L.P. On Monday February 8, 2010, 7:30 am EST
HAMILTON, BERMUDA--(Marketwire - 02/08/10) - Brookfield Infrastructure Partners L.P. (the "Partnership") (NYSE:BIP - News) (TSX:BIP.UN - News) today announced its results for the year ended December 31, 2009, as well as those of its subsidiary, Brookfield Infrastructure L.P. (together with its subsidiaries "Brookfield Infrastructure")(1).
Adjusted net operating income ("ANOI")(2) for Brookfield Infrastructure totalled $117.4 million ($2.46 per unit) for the year ended December 31, 2009 compared to ANOI of $59.7 million ($1.54 per unit) in 2008. Brookfield Infrastructure's ANOI increased 24% over 2008 after adjusting for non-recurring revenue and the impact of TBE, which was sold in 2009. These results reflect the six week contribution from investments in Prime Infrastructure, Dalyrmple Bay Coal Terminal ("DBCT") and PD Ports following close of the recapitalization transaction on November 20, 2009, as well as strong performance from growth at Transelec. Excluding the impact of TBE and non-recurring revenue in 2008, ANOI from utility and energy operations was $55.8 million, a 35% increase versus 2008. Brookfield Infrastructure's timber operations continued to be impacted by the softness in the U.S. housing market. As a result of a depressed price environment and a reduction in harvest levels to preserve inventory value, ANOI from timber operations declined to a loss of $2.6 million, a 120% decrease compared with 2008.
In the fourth quarter of 2009, ANOI for Brookfield Infrastructure totalled $20.5 million ($0.27 per unit) compared to ANOI of $11.3 million ($0.29 per unit) in 2008. The increase in ANOI over the prior year was primarily due to inclusion of results from Prime Infrastructure, DBCT and PD Ports for the six-week period following acquisition close. ANOI from Brookfield Infrastructure's transmission operations increased $3.7 million due to growth at Transelec associated with the increase in its regulated rates and additions to its asset base. In the fourth quarter of 2009, Brookfield Infrastructure's timber operations reported a negative ANOI of $2.7 million reflecting continued weakness in timber markets.
Investorman
15 years ago
Forbes
Special Report
Special Report: The 100 Best Mid-Cap Stocks In America
Brian Zajac, 10.07.09, 6:00 PM ET
Mid-cap growth companies would be right up Goldilocks' alley: Not too hot and not too cold. They strike a sensible balance between small companies that might not be able to sustain their past performance and big companies that may be past their prime. This year's select list of 100 companies shows a unique combination of growth, financial stability and promising forecasts for the coming years.
The reason why this segment of the market should not be overlooked by investors is evidenced in our historical price charts comparing the stock performance of Standard & Poor's indexes representing three different size categories of the stock market over one-year, five-year and 10-year periods.
Mid-cap stocks have more than held their own in this volatile market. Through Sept. 28, the S&P MidCap 400 index shows a 0.8% decline for the past 12 months. Over the same period, the large-cap S&P 500 and the S&P SmallCap 600 indexes show declines of 4% and 8%, respectively. For the past five years, the annualized price return of the S&P MidCap 400 Index is 3.2%. That compares to a 2.0% gain for the S&P SmallCap 600 index and a 0.9% decline in the S&P 500 index over the same time period.
Forbes' fifth annual listing of the Best Mid-Cap Companies in America reflects an elite group of 100 firms that have demonstrated better profitability and growth than their peers. Our portfolio of best mid-caps from last year, despite tough market conditions, slightly outperformed the S&P MidCap 400 Index over the past 12 months. You can read about the best and worst movers from last year's list in our Winners and Losers feature. Because of our rigid screening process and the limitation of the market value range, only 16 companies returned to our best mid-cap list this year.
Our definition of mid-cap companies is public corporations with a market value between $750 million and $3.3 billion. To compile the 100 best, we put more than 1,000 companies that fit our market value requirement through a screen for profitability and growth over the past year. We also require companies to have five-year forecasted earnings growth of at least 7% a year from Thomson IBES. We gave the remaining companies rankings for latest 12-month and five-year growth in sales, earnings and return on equity. We give more weight to the long-term results and also factor in balance sheet strength.
From these rankings, we next reviewed corporate news and security analyst reports on each firm. We eliminated companies that have significant legal problems or other problems that might hinder future growth. We checked Accounting and Governance Risk ratings from Audit Integrity. This independent research firm, based in New York and Los Angeles, scores companies higher for having more transparent accounting methods and more shareholder-friendly governance practices.
At the top of the list this year is Myriad Genetics, a health care firm that makes diagnostic testing products to determine the risk of diseases such as breast or ovarian cancer. With revenue growth of 43% over the past five years and 47% over the latest year, the debt-free Myriad outscored the rest of the best. In addition, analysts from Thomson IBES are expecting annual earnings per share growth of 25% over the next three to five years.
Investorman
15 years ago
Brookfield Establishes C$1 Billion Fund to Provide Debtor-in-Possession Financing With the Backing of EDC, CIBC and Sun Life
August 19, 2009 10:00 AM ET
Brookfield Asset Management ("Brookfield") (TSX: BAM.A)(NYSE: BAM)(EURONEXT: BAMA) and Export Development Canada ("EDC") today announced that Brookfield has established a C$1 billion fund (the "Fund") with the backing of EDC to provide debtor-in-possession ("DIP") loans and other specialty finance solutions to Canadian companies undergoing a restructuring or reorganization.
Brookfield has committed to provide 10 per cent of the Fund's capital and will manage the Fund, identifying and evaluating investment opportunities. EDC played a lead role in structuring the Fund, and is the largest investor with an initial participation of C$450 million that could grow to C$1 billion.
"Brookfield's history of specialty bridge lending and expertise in corporate restructuring positions us well to provide tailored solutions to support companies through the restructuring process. We believe that providing financing for companies undertaking a restructuring will help viable enterprises emerge from the current recession in a strong competitive position," said Joe Freedman, the Senior Managing Partner responsible for the Fund at Brookfield.
DIP financing provides companies seeking protection from creditors with capital to continue to operate their business while they complete a plan of reorganization. The Fund will target mid-market and larger scale opportunities where at least C$20 million of financing is required.
"This Fund will help Canadian companies gain access to credit during restructuring, when it's most needed," said Eric Siegel, President and CEO of EDC. "This new partnership with Brookfield enables us to further assist even more Canadian companies during the current downturn."
Fund investors also include Canadian Imperial Bank of Commerce ("CIBC") and Sun Life Financial Inc.
"CIBC is pleased to be a part of this initiative which will help support Canadian companies in these uncertain economic times," said Laura Dottori-Attanasio, Global Head of Corporate Credit Products at CIBC.
Investorman
16 years ago
Where to Invest When the Economy Goes "BAM"!
http://www.fool.com/investing/value/2009/05/06/where-to-invest-when-the-economy-goes-bam.aspx
Christopher Barker
May 6, 2009
Have you been BIP-tized into the world of BAM?
Brookfield Asset Management (NYSE: BAM) is no cult, but with $24 billion in assets, it is something of an empire. With a focus on property, power, and infrastructure assets, BAM has spawned a couple of targeted spinoffs, in which it retains substantial ownership stakes.
A host of companies
As a former shareholder, I have serious respect for BAM's long-term track record of delivering shareholder value from the assets that form its empire. Although shares have taken a beating since the housing crisis reared its ugly head, the past 20 years of stock appreciation tell a more captivating story. But no matter how well-managed the company may be, it simply couldn't escape a global economic upheaval this severe.
BAM remains profitable despite incredible challenges to several of its core businesses. The company earned $93 million in the first quarter, less than half what it brought in a year earlier, but still solidly in the black. Cash flow fell 38% to $273 million; BAM's specialty funds and investments combined for most of that decline, while income from commercial property rentals and power generation showed some resiliency. BAM's corporate property interests come from its 50% stake in Brookfield Properties (NYSE: BPO), and the company reported an occupancy rate of 96% for the quarter.
Brookfield Properties, in turn, spawned Brookfield Homes (NYSE: BHS) back in 2003; just in time for a meteoric rise along with the rest of the homebuilding sector, followed by a spectacular fall. While Brookfield Homes consoled shareholders with a smaller loss than last year, the numbers were definitely not encouraging. The homebuilder saw a 46% drop in revenue on 38% fewer home closings, and watched average home sales prices slide an additional 15% from the prior year. As I've noted previously in the case of related plays like USG (NYSE: USG) and Weyerhaeuser (NYSE: WY), homebuilding in North American remains in a fundamental bear market despite a notable up-tick in investor sentiment. I still would place a giant "do not enter" sign next to equities like Pulte Homes (NYSE: PHM).
The best of the lot
With that in mind, is there an attractive vehicle for exposure to the management expertise of the Brookfield empire without the unwanted exposure to housing? Fortunately, the answer is yes. Brookfield Infrastructure Partners (NYSE: BIP) principally holds electric transmission and timberland assets. BIP recorded adjusted net operating income of $8.8 million in the first quarter. That's a 53% decline from a year earlier, but by idling valuable timberlands and pursuing growth with a promising electric transmission development project in Texas, I see BIP as the best-positioned arm of the Brookfield empire to deliver shareholder value under any economic conditions for years to come.
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