Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 204

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 7
Chunk 204
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 to time, pursuant to which BBUC will subscribe for such number of units necessary to satisfy its obligations in respect of requests for exchange made by BBUC exchangeable shareholders, as and when they arise, or a redemption of BBUC exchangeable shares by BBUC, in each case at a price per unit equal to the NYSE closing price of one unit on the date that the applicable request for exchange is received by our transfer agent, or the NYSE closing price of one unit on the trading day immediately preceding the announcement of a redemption, as the case may be.

Subordinated Credit Facilities

A subsidiary of BBUC is party to two credit agreements with our partnership, one as borrower and one as lender, each providing for a ten-year revolving $1 billion credit facility, maturing on March 15, 2032 (unless terminated by the lender in accordance with the agreement after the fifth anniversary) to facilitate the movement of cash within our group. One credit facility permits the BBUC subsidiary to borrow up to $1 billion from our partnership and the other constitutes an operating credit facility that permits our partnership to borrow up to $1 billion from the BBUC subsidiary.

The credit facilities are available by way of U. S. advances that bear interest based on the U. S. base rate or U. S. dollar SOFR, or Canadian dollar advances that bear interest based on CORRA or the Canadian prime rate, in each case plus an applicable margin that is subject to adjustment from time to time. In addition, each credit facility contemplates potential deposit arrangements pursuant to which the lender thereunder would, with the consent of a borrower, deposit funds on a demand basis to such borrower’s account at the rate of interest specified in such deposit arrangement. Pursuant to those deposit arrangements, as at December 31, 2024, the net amount outstanding on deposit was approximately $470 million receivable from the BBUC subsidiary.

Equity Commitment Agreement

Our partnership has provided BBUC with an equity commitment in the amount of $2 billion. The equity commitment may be called by BBUC in exchange for the issuance of a number of class C shares or BBUC preferred shares, as the case may be, to our partnership, corresponding to the amount of the equity commitment called divided (i) in the case of a subscription for class C shares, by the volume-weighted average of the trading price for one BBUC exchangeable share on the principal stock exchange on which the BBUC exchangeable shares are listed for the five (5) days immediately