TSX/NYSE/PSE: MFC SEHK:945
C$ unless otherwise stated
TORONTO, Aug. 11, 2014 /CNW/ - Manulife Financial Corporation
("Manulife") today announced a Canadian public offering of
Non-cumulative Rate Reset Class 1 Shares Series 17 ("Series 17
Preferred Shares"). Manulife will issue 10 million Series 17 Preferred
Shares priced at $25 per share to raise gross proceeds of $250 million.
The offering will be underwritten by a syndicate of investment dealers
co-led by Scotia Capital Inc., RBC Capital Markets and TD Securities
and is anticipated to qualify as Tier 1 capital for Manulife. The
expected closing date for the offering is August 15, 2014. Manulife
intends to file a prospectus supplement to its June 23, 2014 base shelf
prospectus in respect of this issue.
Holders of the Series 17 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 December 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 2.36 per cent.
Holders of Series 17 Preferred Shares will have the right, at their
option, to convert their shares into Non-cumulative Rate Reset Class 1
Shares Series 18 ("Series 18 Preferred Shares"), subject to certain
conditions, on December 19, 2019 and on December 19 every five years
thereafter. Holders of the Series 18 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 2.36 per cent.
Manulife intends to use the net proceeds from the offering to partially
fund the redemption of Manulife's Non-cumulative Rate Reset Class 1
Shares Series 1 (the "Series 1 Preferred Shares") on September 19,
2014.
The Series 17 Preferred Shares and Series 18 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.
Caution regarding forward-looking statements
This document contains forward-looking statements within the meaning of
the "safe harbour" provisions of Canadian provincial securities laws
and the U.S. Private Securities Litigation Reform Act of 1995 with
respect to Manulife's proposed redemption of the Series 1 Preferred
Shares. Although we believe that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties, and undue reliance should not be placed on
such statements. Certain material factors or assumptions are applied in
making forward-looking statements, and actual results may differ
materially from those expressed or implied in such statements.
Important factors that could cause actual results to differ materially
from expectations include but are not limited to general business and
economic conditions. Additional information about material factors that
could cause actual results to differ materially from expectations may
be found in our most recent annual and interim reports and elsewhere in
our filings with Canadian and U.S. securities regulators. We do not
undertake to update any forward-looking statements except as required
by law.
About Manulife
Manulife 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 and its
subsidiaries were approximately C$637 billion (US$597 billion) as at
June 30, 2014. Our group of companies operates as Manulife 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 can be found on the Internet at manulife.com.
SOURCE Manulife Financial Corporation
