C$ unless otherwise stated
TSX/NYSE/PSE: MFC
SEHK:945
TORONTO, Feb. 18, 2014 /CNW/ - Manulife Financial Corporation
("Manulife") today announced a Canadian public offering of
Non-cumulative Rate Reset Class 1 Shares Series 15 ("Series 15
Preferred Shares"). Manulife will issue 8 million Series 15 Preferred
Shares priced at $25 per share to raise gross proceeds of $200 million.
The offering will be underwritten by a syndicate of investment dealers
co-led by Scotia Capital Inc., CIBC World Markets and RBC Capital
Markets and is anticipated to qualify as Tier 1 capital for Manulife.
The expected closing date for the offering is February 25, 2014.
Manulife intends to file a prospectus supplement to its July 18, 2012
base shelf prospectus in respect of this issue.
Holders of the Series 15 Preferred Shares will be entitled to receive a
non-cumulative quarterly fixed dividend yielding 3.90 per cent
annually, as and when declared by the Board of Directors of Manulife,
for the initial period ending June 19, 2019. Thereafter, the dividend
rate will be reset every five years at a rate equal to the 5-year
Government of Canada bond yield plus 2.16 per cent.
Holders of Series 15 Preferred Shares will have the right, at their
option, to convert their shares into Non-cumulative Rate Reset Class 1
Shares Series 16 ("Series 16 Preferred Shares"), subject to certain
conditions, on June 19, 2019 and on June 19 every five years
thereafter. Holders of the Series 16 Preferred Shares will be entitled
to receive non-cumulative quarterly floating dividends, as and when
declared by the Board of Directors of Manulife, at a rate equal to the
three-month Government of Canada Treasury Bill yield plus 2.16 per
cent.
The net proceeds from the offering will be utilized for general
corporate purposes, including future refinancing requirements.
"Our financing activities take into account future refinancing needs. We
have over $3 billion in potential refinancing requirements over the
next 12 to 20 months. We have taken the opportunity to issue preferred
shares with favourable terms," said Senior Executive Vice President and
Chief Financial Officer Steve Roder.
The Series 15 Preferred Shares and Series 16 Preferred Shares have not
been and will not be registered in the United States under the United
States Securities Act of 1933, as amended (the "Securities Act"), or
the securities laws of any state of the United States and may not be
offered, sold or delivered, directly or indirectly in the United States
or to, or for the account or benefit of, a "U.S. person" (as defined in
Regulation S under the Securities Act) absent registration or an
applicable exemption from such registration requirements. This press
release does not constitute an offer to sell or a solicitation to buy
securities in the United States and any public offering of the
securities in the United States must be made by means of a prospectus.
About Manulife Financial
Manulife Financial is a leading Canada-based financial services group
with principal operations in Asia, Canada and the United States.
Clients look to Manulife for strong, reliable, trustworthy and
forward-thinking solutions for their most significant financial
decisions. Our international network of employees, agents and
distribution partners offers financial protection and wealth management
products and services to millions of clients. We also provide asset
management services to institutional customers. Funds under management
by Manulife Financial and its subsidiaries were approximately C$599
billion (US$563 billion) as at December 31, 2013. The Company operates
as Manulife Financial in Canada and Asia and primarily as John Hancock
in the United States.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE,
and under '945' on the SEHK. Manulife Financial can be found on the
Internet at manulife.com.
SOURCE Manulife Financial Corporation
