Brookfield Business Partners LP Q3 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Devin Dodge - BMO Capital Markets Equity Research - Analyst : So look, the number one question I get on BBU from investors is around your leverage. Now I have my own thoughts, but can you walk us through your approach to leverage and the flexibility that you have to manage through market disruptions?

Question: Devin Dodge - BMO Capital Markets Equity Research - Analyst : Okay. That was -- that's a good overview. Prior to the pandemic, I think the high-yield debt markets were pretty favorable to issuers, both from interest rates perspective but also the terms attached to that debt. Can you give us a sense for how that high-yield debt markets look now versus what you were seeing a year ago? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 03, 2020 / 4:00PM, BBU_u.TO - Q3 2020 Brookfield Business Partners LP Earnings Call

Question: Devin Dodge - BMO Capital Markets Equity Research - Analyst : Okay. That's helpful. Maybe just one last one. On Westinghouse, Jaspreet, I think in your comments, you might have mentioned that at the end of the year, it might be at the run rate within that targeted range. Just can you confirm that? And then, I guess, what is remaining to do at Westinghouse? Like, what could put you up to that -- the upper end of that targeted range?

Question: Gary Ho - Desjardins Securities Inc., Research Division - Analyst : Just maybe just the first one on Clarios, if I can. I just want to get an update from the results in the quarter. How much of the pent-up demand, if any, from, I guess, first half of this year contributed to Q3 results, trying to gauge the sustainability of this quarter's strong results. Any comments there would be helpful. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 03, 2020 / 4:00PM, BBU_u.TO - Q3 2020 Brookfield Business Partners LP Earnings Call

Question: Gary Ho - Desjardins Securities Inc., Research Division - Analyst : Okay. And then I guess my next question, perhaps for Cyrus. Just on the U.S. election, just wondering how it may or may not impact your capital deployment and monetization decisions, whether potentially higher taxes changed connectivity in the marketplace or where you might decide to invest capital?

Question: Gary Ho - Desjardins Securities Inc., Research Division - Analyst : Okay. And then just next question maybe on Multiplex. Just given the recent restrictions in the U.K., how that might impact Multiplex operations there? Any comments how that might impact in Q4?

Question: Gary Ho - Desjardins Securities Inc., Research Division - Analyst : Okay. And then my -- just my last question just on the Genworth or Sagen transaction. Can you elaborate kind of what you can do differently now? The transaction goes through owning 100%, taking it private versus owning the control block, you mentioned then running it more efficiently, better cap structure. Can you elaborate on any targets you can share with us?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : Just recognizing there's always going to be uncertainty on how the future plays out, but when you take a look at your largest investments over, say, the next year, what would be the 2 or 3 of them that you think have the greatest upside when you look at company EBITDA? And what would be the drivers of the upside?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : Okay. And then just my other question was, you mentioned, Cyrus, reviewing carve-outs, underperforming public companies and, I think, companies that may have specific financing needs. How many of these, if any, would have been companies that you would have purchased securities during the downturn? And then just maybe, in general, if there's any color you can have on any discussions you've had since last quarter with those companies that you had bought securities during the downturn? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 03, 2020 / 4:00PM, BBU_u.TO - Q3 2020 Brookfield Business Partners LP Earnings Call