Consolidated Financial Statements and Notes - Brookfield Asset ...

11. CAPITAL SECURITIESThe company has the following capital securities outstanding:MILLIONS Note 2005 2004Corporate preferred shares and preferred securities (a) $ 669 $ 647Subsidiary preferred shares (b) 929 901Total $ 1,598 $ 1,548(a)Corporate Preferred Shares and Preferred SecuritiesSharesCumulativeOutstanding Description Distribution Rate Currency 2005 2004(MILLIONS)Class A Preferred Shares 10,000,000 Series 10 5.75% C$ $ 215 $ 2094,032,401 Series 11 5.50% C$ 87 847,000,000 Series 12 5.40% C$ 151 146Preferred Securities 5,000,000 due 2050 8.35% C$ 108 1045,000,000 due 2051 8.30% C$ 108 104Total $ 669 $ 647Subject to the Toronto Stock Exchange, the Series 10, 11 and 12 shares, unless redeemed by the company for cash, are convertibleinto Class A common shares at a price equal to the greater of 95% of the market price at the time of conversion and C$2.00, at theoption of both the company and the holder, at any time after the following dates:Earliest Permitted Company’s Holder’sClass A Preferred Shares Redemption Date Conversion Option Conversion OptionSeries 10 September 30, 2008 September 30, 2008 March 31, 2012Series 11 June 30, 2009 June 30, 2009 December 31, 2013Series 12 March 31, 2014 March 31, 2014 March 31, 2018The preferred securities are subordinated and unsecured. The company may redeem the preferred securities in whole or in partfi ve years after the date of issue at a redemption price equal to 100% of the principal amount of the preferred securities plusaccrued and unpaid distributions thereon to the date of such redemption. The company may elect to defer interest payments on thepreferred securities for periods of up to fi ve years and may settle deferred interest and principal payments by way of cash or thedelivery to a trustee for sale of suffi cient preferred shares or common shares of the company.(b)Subsidiary Preferred SharesSharesCumulativeOutstanding Description Dividend Rate Currency 2005 2004(MILLIONS)Class AAA Preferred Shares 8,000,000 Series F 6.00% C$ $ 172 $ 1674,400,000 Series G 5.25% US$ 110 1108,000,000 Series H 5.75% C$ 173 1678,000,000 Series I 5.20% C$ 172 1678,000,000 Series J 5.00% C$ 172 1666,000,000 Series K 5.20% C$ 130 124Total $ 929 $ 90178Brookfield Asset Management | 2005 Annual Report