Mr. Mark Wallace of Clarios reports

CLARIOS ANNOUNCES PRICING OF UPSIZED PRIVATE OFFERING OF $750 MILLION 6.750% SENIOR SECURED NOTES DUE 2028 AND UPSIZED $2.75 BILLION TERM LOAN FACILITY MATURING 2030

On April 20, 2023, Brookfield Business Partners LP and Brookfield Asset Management Ltd.'s Clarios Global LP priced $750-million in aggregate principal amount of senior secured notes due 2028 with a coupon of 6.750 per cent. The company also increased the aggregate principal amount to be borrowed under a new tranche of term loans from $1-billion to $2.75-billion at secured overnight financing rate plus 3.75 per cent maturing May, 2030. The pricing of the notes was upsized from the previously announced offering of $500-million. The weighted-average interest rate for the notes and the new term loan facility are expected to be approximately 7 per cent, based on the current one-month-term SOFR swap for five years.

"We are pleased with this outcome and the strong continued support received from the market, which enabled us to almost triple the size of our debt offering," said Mark Wallace, chief executive officer of Clarios. "Upon closing, we will have successfully refinanced $3.5-billion of our borrowings while extending the maturity of our capital structure through 2030 with virtually no increase to our overall borrowing costs."

Clarios is owned by Brookfield Business Partners, together with institutional partners of Brookfield Asset Management. Brookfield Business Partners is the flagship listed vehicle of the private equity group of Brookfield Corp.

The gross proceeds from the offering of the notes, together with the borrowings under the new term loan facility, are expected to be used to repay approximately $3.5-billion of borrowings under the existing term loan facility maturing in April, 2026. While the existing term loan facility currently has a margin of London interbank offered rate plus 3.25 per cent, it was expected to transition to SOFR plus a credit spread adjustment plus 3.25 per cent in the coming months as LIBOR will cease to be published after June 30. Closing of the transactions is expected to occur on May 4, 2023, subject to customary closing conditions.

The notes will be issued by the company and Clarios US Finance Company Inc. The notes and the term loans under the new term loan facility will be guaranteed by Clarios International LP, which owns all of the equity interests of the issuers, and each of the company's subsidiaries that is a guarantor under the company's existing credit agreements, and the issuers' existing 6.250 per cent senior secured notes due 2026, 4.375 per cent senior secured notes due 2026, 6.750 per cent senior secured notes due 2025 and 8.500 per cent senior notes due 2027.

About Clarios Global LP

Clarios is a world leader in advanced energy storage solutions. It partners with its aftermarket and original equipment customers to meet increasing market demand for smarter applications on a global scale. Its approximately 16,800 employees develop, manufacture and distribute a portfolio of evolving battery technologies for virtually every type of vehicle. Its technologies deliver uniquely sustainable, next-generation performance, and bring reliability, safety and comfort to everyday lives. Clarios adds value at every link in the supply chain, ensuring that up to 99 per cent of the materials in its batteries are recovered, recycled and reused, contributing to the progress of the communities it serves and the planet shared.

About Brookfield Business Partners LP

Brookfield Business Partners is a global business service and industrial company focused on owning and operating high-quality businesses that provide essential products and services and benefit from a strong competitive position. Investors have flexibility to invest in Brookfield Business Partners either through Brookfield Business Corp., a corporation, or Brookfield Business Partners, a limited partnership.

Brookfield Business Partners is the flagship listed vehicle of the private equity group of Brookfield Corp., a leading global alternative asset manager with approximately $800-billion of assets under management.

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