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Brookfield Asset Management and Brookfield Infrastructure Partners Completes Recapitalization of Babcock & Brown Infrastructure
TORONTO and HAMILTON, BERMUDA, Nov 20, 2009 (MARKETWIRE via COMTEX) --
Brookfield Asset Management Inc. (NYSE: BAM) (TSX: BAM.A) (Euronext:
BAMA) and Brookfield Infrastructure Partners L.P. (NYSE: BIP) (TSX:
BIP.UN) ("Brookfield Infrastructure"(1) together with Brookfield
Asset Management Inc., "Brookfield") today announced the completion
of the recapitalization of Babcock & Brown Infrastructure (ASX: BBI)
("BBI"). Concurrently with the closing, BBI was renamed Prime
Infrastructure.
In total, Brookfield invested $1.1 billion in the recapitalization of
BBI. Brookfield's newly acquired portfolio of infrastructure assets is
diversified across asset classes, geographies and regulatory regimes.
As a result of the recapitalization, Prime Infrastructure has a
strong balance sheet. Its proportional debt leverage decreased from
98% to approximately 68%, and it has over A$400 million of liquidity
including a newly-established three-year A$300 million corporate
credit facility.
Brookfield Infrastructure invested approximately $940 million of the
total Brookfield investment to acquire a 40% interest in Prime
Infrastructure and 60% of two direct investments acquired from BBI.
The first investment is a 100% interest in UK-based PD Ports, a
"landlord" port which is the third-largest by tonnage in the UK. The
second investment is a 49.9% economic interest in Australia-based
Dalrymple Bay Coal Terminal ("DBCT"), the largest coal export
terminal in the world. Brookfield Asset Management and other
co-investors have acquired the remaining 40% interest in the two
direct investments. Brookfield Infrastructure may sell down up to 10%
of its interest in the two direct investments to co-investors.
With the completion of the transaction, Brookfield Infrastructure's
utility segment will be comprised of premier assets such as Transelec,
Natural Gas Pipeline Company of America, Powerco, International
Energy Group, Ontario Transmission and Tasmania Gas Network. Its
transportation portfolio will be comprised of high quality businesses
such as DBCT, WestNet Rail, PD Ports and Euroports. Finally, with
Longview and Island Timberlands, the portfolio will also include some
of the highest quality timberlands in North America. Going forward,
Brookfield Infrastructure will be able to grow from a very solid
foundation, with in-place cash flow supported by regulated and
contractual frameworks that will account for over 70% of its net
operating income.
"This is a transformational transaction for Brookfield's
infrastructure platform, enhancing our position as a leading global
infrastructure asset manager and adding approximately US$8 billion of
assets under management," said Sam Pollock, Senior Managing Partner
and CEO of Brookfield's Infrastructure Group. "We now own a portfolio
of premier assets, diversified across our utilities, transportation
and timber sectors. In addition, largely because of the contractual
and regulated nature of their revenues, these assets will generate
resilient cash flow streams with attractive growth potential due to
our ability to invest in our franchises at attractive returns in
support of our customers' growth initiatives."
Brookfield Asset Management has also agreed to provide management
services for a fee to both Australian Energy Transmission and
Distribution ("AET&D") and Cross Sound Cable ("CSC"), two assets
along with their associated indebtedness that were separated from the
assets of the former BBI.
Brookfield Asset Management Inc. (NYSE: BAM) (TSX: BAM.A) (Euronext:
BAMA) is focused on property, renewable power and infrastructure
assets and has over US$90 billion of assets under management. The
company's common shares are listed on the New York and Toronto stock
exchanges under the symbols BAM and BAM.A, respectively, and on
Euronext under the symbol BAMA. For more information, visit
www.brookfield.com.
Brookfield Infrastructure Partners L.P. (NYSE: BIP) (TSX: BIP.UN),
was established by Brookfield Asset Management Inc. to own and operate
certain infrastructure assets on a global basis. Brookfield
Infrastructure operates high quality, long-life assets that generate
stable cash flows, require relatively minimal maintenance capital
expenditures and, by virtue of barriers to entry and other
characteristics, tend to appreciate in value over time. Its current
business consists of the ownership and operation of premier
utilities, transportation and timber assets in North and South
America, Australasia, Europe and China. It also seeks acquisition
opportunities in other infrastructure sectors with similar
attributes. Brookfield Infrastructure's units trade on the New York
and Toronto stock exchanges under the symbols BIP and BIP.UN,
respectively. For more information, please visit Brookfield
Infrastructure's website at www.brookfieldinfrastructure.com.
Prime Infrastructure (ASX: BBI) is a specialist infrastructure entity
which provides investors access to a diversified portfolio of quality
infrastructure assets. Prime Infrastructure's investment strategy
focuses on owning, managing and operating quality infrastructure
assets in Australia and internationally. For further information
please visit the company's website at www.bbinfrastructure.com
Note: This news release contains forward-looking information within
the meaning of Canadian provincial securities laws and
"forward-looking statements" within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, Section 21E of the U.S.
Securities Exchange Act of 1934, as amended, "safe harbour"
provisions of the United States Private Securities Litigation Reform
Act of 1995 and in any applicable Canadian securities regulations.
The words "will", "grow", "expect", "potential", "stable", "tend",
"seeks", derivations thereof and other expressions that are
predictions of or indicate future events, trends or prospects and
which do not relate to historical matters identify forward-looking
statements. Forward-looking statements in this news release include
statements in regards to Brookfield Infrastructure's intention to
seek co-investors in the direct investments, Brookfield
Infrastructure's ability to generate resilient cash flow streams, the
future prospects of the assets that Brookfield Infrastructure
operates and Brookfield Infrastructure's plans for growth through
acquisitions. Although Brookfield and Brookfield Infrastructure
believe that the anticipated future results, performance or
achievements expressed or implied of such assets by the
forward-looking statements and information are based upon reasonable
assumptions and expectations, the reader should not place undue
reliance on forward-looking statements and information as such
statements and information involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements to differ materially from anticipated
future results, performance or achievement expressed or implied by
such forward-looking statements and information.
Factors that could cause actual results to differ materially from
those contemplated or implied by forward-looking statements include:
economic and financial conditions in the countries in which
Brookfield, Brookfield Infrastructure and Prime Infrastructure each
do business; the behaviour of financial markets, the fact that
success of Brookfield Infrastructure and Prime Infrastructure is
dependent on market demand for an infrastructure company, the
availability of equity and debt financing, the ability to complete
acquisitions in the competitive infrastructure space and to integrate
acquisitions into existing operations, other risks and factors
detailed from time to time in Brookfield's form 40-F filed with the
Securities and Exchange Commission as well as other documents filed
by Brookfield with the securities regulators in Canada and the United
States including Brookfield's most recent Management's Discussion and
Analysis of Financial Results under the heading "Business Environment
and Risks" and other risks and factors described in the documents
filed by Brookfield Infrastructure with the securities regulators in
Canada and the United States including under "Risk Factors" in the
Partnership's most recent Annual Report on Form 20-F and other risks
and factors that are described therein, and we caution that the
foregoing factors that may affect future results is not exhaustive.
When relying on our forward-looking statements to make decisions with
respect to Brookfield or Brookfield Infrastructure, investors and
others should carefully consider the foregoing factors and other
uncertainties and potential events. Except as required by law,
neither Brookfield nor Brookfield Infrastructure undertakes any
obligation to publicly update or revise any forward-looking
statements or information, whether written or oral, as a result of
new information, future events or otherwise.
(1) References to "Brookfield Infrastructure" are to Brookfield
Infrastructure Partners L.P., Brookfield Infrastructure L.P. and/or
its subsidiaries as the context requires.
For more information, please visit our web sites at www.brookfield.com and
www.brookfieldinfrastructure.com or contact:
Brookfield Asset Management
Investor Relations
Katherine Vyse
SVP, Investor Relations and Communications
Tel.: (416) 369-8246
Email Contact
Media Relations
Denis Couture
SVP, Corporate and International Affairs
Tel.: (416) 956-5189
Email Contact
Brookfield Infrastructure Partners L.P.
Investor Relations
Michael Botha
SVP, Finance
Brookfield Asset Management
Tel.: (416) 359-7871
Email Contact
Media Relations - Australia
Kerrie Muskens
Head of Marketing and Communications
Tel.: +61 2 9256 5753 or +61 410 535250
Email Contact
SOURCE: Brookfield Asset Management; Brookfield Infrastructure Partners L.P.
http://www.brookfield.com
http://www.brookfieldinfrastructure.com
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