Brookfield Eyes $3 Billion in Debt for Colonial Pipeline

Brookfield Asset Management Ltd. is lining up approximately $3 billion in debt financing to support its purchase of Colonial Enterprises, which operates the Colonial Pipeline in the US, according to people familiar with the matter.

Morgan Stanley is leading the financing and a deal could emerge in the leveraged loan or bond market as soon as early June, said the people, who were not authorized to discuss the transaction publicly. The new debt financing is expected to sit at the holding-company level, while Colonial’s existing debt will remain on the operating-company level.

Representatives for Brookfield and Morgan Stanley declined ...