QUANTUMONLINE.COM SECURITY DESCRIPTION: Brookfield BRP Holdings (Canada) Inc. 4.625% Perpetual Subordinated Notes guaranteed by Brookfield Renewable Partners L.P. (NYSE:BEP) (See our definition of Guaranteed in our Glossary of Income Investing Terms for the technicalities of the guarantee) redeemable at the issuer's option on or after 04/30/2026 at $25 per note plus accrued and unpaid interest, with no stated maturity. Interest distributions of 4.625% per annum ($1.15625 per annum or $0.2890625 per quarter) will be paid quarterly on 1/30, 4/30, 7/30 & 10/31 to holders of record on the record date that will be fixed by the board (NOTE: the ex-dividend date is one business day prior to the record date).
Distributions paid by these debt securities are interest and are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) but, since they are issued by a foreign company, are NOT eligible for the dividends received deduction for corporate holders. This company may lose its preferential tax rate if it is classified as a Passive Foreign Investment Company in this or a future tax year (see page S-42 of the prospectus for further information).
This security is possibly subject to an early call before 04/30/2026 at $25.00 (100%) of their principal amount plus accrued and unpaid interest within 90 days of a tax event; before 04/30/2026 at $25.50 (102%) of their principal amount plus accrued and unpaid interest within 90 days of the occurrence of a rating agency event (see prospectus for further information).
The issuer may elect to defer the interest payable on the Notes on one or more occasions. Deferred interest will accrue, compounding on each subsequent Interest Payment Date, until paid. (see prospectus for further information).
This security was NOT rated by Moody’s and rated BBB- by S&P at the date of its IPO. The Notes are unsecured, subordinated obligations of the company and will rank junior to the company's senior debt, equally with all existing and future unsecured, subordinated indebtedness of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.
