New owner for PD Ports

Brookfield intends to invest US$1.1bn in BBI’s stapled securities and assets comprising the purchase of approximately US$555m to US$635m of stapled securities for a 35% to 40% interest in the restructured BBI; US$265m for a 49.9% economic interest in Dalrymple Bay Coal Terminal (DBCT) in Australia and the 100% ownership of PD Ports in northeast UK.

Immediately following the purchase of PD Ports, Brookfield will repay £100m (US$160m) of PD Ports’ debt.

The transaction will add approximately US$8bn of assets under management to Brookfield’s infrastructure platform and “is a unique opportunity for Brookfield to invest in high quality, core infrastructure assets,” said Sam Pollock, senior managing partner and CEO of Brookfield’s Infrastructure Group. “Due to the contractual and regulated nature of its revenues, BBI’s portfolio of market leading infrastructure businesses tend to be resilient in economic downturns and are expected to generate consistent cash flows for shareholders now that now that we have addressed BBI’s capital structure issues.”