November 28, 2011 – Brookfield Asset Management Inc., (TSX: BAM.A, NYSE: BAM) (“Brookfield”) and Brookfield Renewable Energy Partners L.P. (TSX: BEP.UN) (“Brookfield Renewable”) today announced the completion of the previously announced strategic combination (the “Combination”) of the renewable power assets of Brookfield Renewable Power Inc. (“BRPI”) and Brookfield Renewable Power Fund (“Fund”) to launch Brookfield Renewable, a publicly-traded partnership focused on renewable power generation.
On completion of the Combination, public unitholders of the Fund received one non-voting limited partnership unit of Brookfield Renewable (“LP Unit”) in exchange for each trust unit of the Fund (the “Trust Units”) held, and the Fund was wound up. The Trust Units will continue to trade on the TSX until the LP Units are listed. It is anticipated that the LP Units will commence trading at the open of markets on or about November 30, 2011 and the Trust Units will be delisted at that time.
Brookfield owns 73% of Brookfield Renewable on a fully-exchanged basis and the remaining 27% is held by the public. In connection with the Combination, a subsidiary of Brookfield Renewable assumed all obligations relating to approximately C$1.1 billion of unsecured public corporate bonds issued by BRPI. As well, Brookfield Renewable Power Preferred Equity Inc. (TSX: BRF.PR.A), a former subsidiary of the Fund and the issuer of C$250 million of Class A Preference Shares, Series 1, is now a subsidiary of Brookfield Renewable.
Concurrent with the completion of the Combination, Brookfield Renewable and certain of its key holding companies entered into a US$600 million committed unsecured revolving credit facility with six Canadian banks. The facility, which replaces the facilities that had been in place for BRPI and the Fund, expires on March 31, 2014, subject to additional one year extensions.
This news release shall not constitute an offer to sell or a solicitation of an offer to buy the limited partnership units of Brookfield Renewable or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. The securities to be offered by Brookfield Renewable have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act. Brookfield Renewable intends to offer and sell its securities in the United States pursuant to the exemption from registration set forth in Section 3(a)(10) of the U.S. Securities Act.
Brookfield Renewable Energy Partners (TSX: BEP.UN) operates one of the largest publicly-traded, pure-play renewable power platforms globally. Its primarily hydroelectric portfolio includes 170 hydropower facilities and 5 wind farms, and totals approximately 4,800 MW of installed capacity including projects under construction. Its portfolio is diversified across 67 river systems and 10 power markets in Canada, the United States and Brazil, and generates enough electricity from renewable resources to power two million homes on average each year. With a fully-contracted portfolio of high-quality assets and a significant pipeline of development projects and growth opportunities, the business is positioned to generate stable, long-term cash flows supporting regular and growing cash distributions to unitholders. For more information, please visit www.brookfieldrenewable.com.
Note: This news release contains forward-looking statements and information within the meaning of the Canadian securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements in this news release include statements regarding the proposed timing of the listing of the LP Units, the anticipated benefits of the transaction, the quality of Brookfield Renewable’s assets and the resiliency of the cash flow they will generate, Brookfield Renewable’s anticipated financial performance and the future growth prospects and distribution profile of Brookfield Renewable. Forward-looking statements can be identified by the use of words such as “will”, “expected”, “intend”, “continue”, “positioned” and “targets”, or variations of such words and phrases. Although Brookfield Renewable believes that such forward-looking statements and information are based upon reasonable assumptions and expectations, it can give no assurance that such expectations will prove to have been correct. 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 of Brookfield Renewable to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Except as required by law, Brookfield Renewable undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.
Director, Investor Relations and Communications
Tel: (416) 359-1955