Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 148

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 5
Chunk 148
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 plus 40 basis points. Any deposit balance due to Brookfield is due on demand and bears interest at SOFR plus 160 basis points, subject to the terms of such interest more particularly described in the deposit agreement. As at December 31, 2024, the amount of the deposit from Brookfield was $nil (2023: $nil) and the amount on deposit with Brookfield was $nil (2023: $nil).

The partnership has an agreement with Brookfield to subscribe for up to $1.5 billion of perpetual preferred equity securities, whereby proceeds are available for us to draw upon for future growth opportunities as they arise. Brookfield has the right to cause the partnership to redeem the preferred securities at par to the extent of any asset sales, financings or equity issuances. Brookfield has the right to waive its redemption option. As at December 31, 2024, the amount subscribed from subsidiaries of the partnership was $725 million (2023: $725 million) with an annual dividend of 7%. The remaining capacity on the commitment agreement with Brookfield is $25 million. For the year ended December 31, 2024, distributions of $52 million have been declared on the perpetual preferred equity securities (2023: $83 million).

The table below outlines the partnership’s consolidated net debt-to-capital ratio as at December 31, 2024 and 2023:

  (US$ MILLIONS, except as noted)                                 December 31, 2024                   December 31, 2023               
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Corporate borrowings                                            $                        2,142      $                        1,440  
  Non-recourse borrowings in subsidiaries of the partnership                              36,720                              40,809  
  Cash and cash equivalents                                                              (3,239)                             (3,252)  
  Net debt                                                        $                       35,623      $                       38,997  
  Total equity                                                                            17,308                              18,532  
  Total capital                                                   $                       52,931      $                       57,529  
  Net debt-to-capital ratio                                       67%                                 68%                             

The partnership’s general partner has implemented a distribution policy pursuant to which we intend to make quarterly cash distributions in an initial amount currently anticipated to be approximately $0.25 per unit on an annualized basis. On January 30, 2025, the