Brookfield Business Partners announces equity offering and concurrent private placements of ~$800M

Brookfield Business Partners (NYSE:BBU) agreed to issue 8.76M limited partnership units, on a bought deal basis, to a syndicate of underwriters co-led by TD Securities, Scotiabank, BMO Capital Markets, Credit Suisse and HSBC Securities at $39.40/unit for gross proceeds of ~$345M.

Concurrently, Brookfield Asset Management will purchase 6.61M redemption-exchange units of Brookfield Business Partners at offering price for ~$250M, as well as issue 5.077M via private placement to OMERS for gross proceeds of ~$200M.

Underwriters have an over-allotment option to purchase up to an additional 1.314M units, and if over-allotment option is exercised in full, the gross offering size would increase to ~$847M.

Brookfield Business Partners intends to use the net proceeds for general corporate purposes.

I suspect Brookfield plans a large P/E deal in the near future or a number of small deals. Their last purchase was Johnson Controls Power Solutions (Car Battery Business) acquires for $13.2B including dent ($3B Equity and $10B Debt).

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Brookfield Business Partners announces equity offering and concurrent private placements of ~$800M
https://seekingalpha.com/news/3472865