This is an interesting issuance because the $24.75 price is well down from the peaks we've seen recently. However, it is likely a reflection of the fear in banks and credit markets right now.I'm sure the fact that BIP is buying toll roads in Chile with a good portion of the money doesn't help. In fact the fear around commodities probably has markets worried about both the Chilean and Australian projects.I don't like the dilution here, but I do like the new assets and this is part of the fruition of Brookfield's efforts to capitalize on the European troubles.One of the members of the consortium that owns the rights to operate the toll road and tunnel which BIP is buying is Spanish construction firm ACS, which is heavily indebted ($5.5 billion due this year against EBITDA of $2.3 billion) and has been selling assets to meet its debt requirements.And look who is there to swoop in.The road and tunnel are part of the Santiago ring road system located in the north central part of the city. http://g.co/maps/ngec8A rather unimpressive estimate of traffic in the tunnel I found put it at 28,000O cars/day - though this was expected to more than double to 60,000 cars/day by 2020.BIP is getting a 24% stake in both the roads for $150m. The enterprise value of the roads, according to BIP, is $1.1 billion and it cost around $714m to build them.Tolls can be adjusted with inflation and congestion fees can be charged, and BIP is expecting to recieve 12-15% returns on this investment.
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