Brookfield Asset Management Inc. (BAM-A.TO, BAM) and Brookfield Infrastructure Partners L.P. (BIP, BIP-UN.TO) announced that they have signed an agreement with Babcock & Brown Infrastructure, or BBI, to sponsor a comprehensive restructuring and recapitalization.
As per the agreement with BBI, Brookfield Asset Management and Brookfield Infrastructure have jointly and severally subscribed for a proposed investment in stapled securities and assets of BBI of approximately US$1.1 billion. The proposed investment is comprised of the purchase of approximately A$625 million to A$713 million, or approximately US$555 million to US$635 million, of stapled securities for a 35% to 40% interest in the restructured BBI and A$295 million, or approximately US$265 million, for the direct purchase from BBI of a 49.9% economic interest in Dalrymple Bay Coal Terminal, in Queensland, Australia, and 100% of PD Ports. Immediately following the purchase of PD Ports, Brookfield will repay Pounds Sterling 100 million, or approximately US$160 million, of debt at PD Ports.
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