Brookfield Investment Management Inc.

Brookfield Investment Management Inc.

June 19, 2012 08:33 ET

Brookfield High Yield Strategic Income Fund Completes C$125 Million Initial Public Offering

TORONTO, ONTARIO--(Marketwire - June 19, 2012) - Brookfield Investment Management (Canada) Inc. (the "Manager") is pleased to announce the closing of the initial public offering of Brookfield High Yield Strategic Income Fund (the "Fund"). Pursuant to the offering, the Fund issued an aggregate of 12.5 million units (the "Units") at C$10.00 per Unit for gross proceeds of C$125 million. The Units are listed on the Toronto Stock Exchange under the symbol BHY.UN.

The Fund has been created to obtain exposure to a portfolio (the "Portfolio") comprised primarily of high yield bonds, debentures, notes, corporate loans, convertible debentures and other debt instruments rated below investment grade.

The Fund's investment objectives are to: (i) provide holders of the Units (the "Unitholders") with tax-advantaged quarterly cash distributions; (ii) maximize total return to Unitholders through distributions and capital appreciation; and (iii) preserve capital. The distributions are initially targeted to be 6.5% per annum on the subscription price of C$10.00 per Unit (C$0.1625 per Unit per quarter or C$0.65 per annum). Commencing in June 2013, the Fund will announce, at least annually, the expected distribution amount for the following four quarters.

The Portfolio will be actively managed by Brookfield Investment Management Inc. (the "Investment Manager"). The Manager and Investment Manager are both subsidiaries of Brookfield Asset Management Inc., a Canadian based, global alternative asset manager with approximately $150 billion in assets under management as of March 31, 2012 and over 100 years of experience owning and operating assets with a focus on property, renewable power, infrastructure and private equity.

"We are pleased to announce the successful initial public offering of the Brookfield High Yield Strategic Income Fund, which provides investors with access to the breadth and depth of Brookfield's capital markets expertise," said Mr. Kim G. Redding, Chief Executive Officer and Chief Investment Officer of Brookfield Investment Management.

Mr. Dana Erikson, Managing Director and Global Head of High Yield, said, "We're excited to bring this fund to the Canadian market. The North American corporate high yield asset class is well supported by positive fundamental conditions, including sound corporate liquidity and low default rates as well as strong credit quality."

The syndicate of agents (the "Agents") for this offering was led by RBC Capital Markets and CIBC, and included Scotiabank, TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., Canaccord Genuity Corp., GMP Securities L.P., Raymond James Ltd., Dundee Securities Ltd., Macquarie Private Wealth Inc., Manulife Securities Incorporated and Brookfield Financial Corp.

The Fund has granted the Agents an over-allotment option to acquire additional Units at C$10.00 per Unit at any time during the next 30 days.

Brookfield Asset Management

Brookfield is a global alternative asset manager with approximately $150 billion in assets under management as of March 31, 2012. We have over a 100-year history of owning and operating assets with a focus on property, renewable power, infrastructure and private equity. We offer a range of public and private investment products and services, which leverage our expertise and experience and provide us with a distinct competitive advantage in the markets where we operate. On behalf of our clients, Brookfield is also an active investor in the public securities markets, where our experience extends nearly 40 years. Over this time, we have successfully developed several investment operations and built expertise in the management of institutional portfolios, retail mutual funds, and structured product investments.

Brookfield Investment Management

Through our SEC-registered investment advisor, Brookfield Investment Management, our public market activities complement our core competencies as a direct investor. These activities encompass global listed real estate and infrastructure equities, corporate high yield investments, opportunistic credit strategies and a dedicated insurance asset management division. Headquartered in New York, NY, Brookfield Investment Management maintains offices and investment teams in Toronto, Chicago, Boston and London.

The Fund uses its web site as a channel of distribution of material company information. Financial and other material information regarding the Fund is routinely posted on and accessible at www.brookfieldim.com.

For more information, please visit www.brookfieldim.com.

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