TSX/NYSE/PSE: MFC SEHK:945
C$ unless otherwise
stated
TORONTO, May 17, 2016 /CNW/ - Manulife Financial
Corporation ("Manulife") today announced that it does not intend to
exercise its right to redeem all or any of its currently
outstanding 8,000,000 Non-cumulative Rate Reset Class 1 Shares
Series 3 (the "Series 3 Preferred Shares") (TSX: MFC.PR.F) on
June 19, 2016. As a result,
subject to certain conditions described in the prospectus
supplement dated March 7, 2011
relating to the issuance of the Series 3 Preferred Shares (the
"Prospectus"), the holders of the Series 3 Preferred Shares have
the right, at their option, to convert all or part of their Series
3 Preferred Shares on a one-for-one basis into Non-cumulative
Floating Rate Class 1 Shares Series 4 of Manulife (the "Series 4
Preferred Shares") on June 20, 2016.
This date is the first business day following the conversion date
of June 19, 2016, identified in the
Prospectus, which falls on a Sunday. A formal notice of the right
to convert Series 3 Preferred Shares into Series 4 Preferred Shares
will be sent to the registered holders of the Series 3 Preferred
Shares in accordance with the share conditions of the Series 3
Preferred Shares. Holders of Series 3 Preferred Shares are not
required to elect to convert all or any part of their Series 3
Preferred Shares into Series 4 Preferred Shares. Holders who do not
exercise their right to convert their Series 3 Preferred Shares
into Series 4 Preferred Shares on such date will retain their
Series 3 Preferred Shares, unless automatically converted in
accordance with the conditions below.
The foregoing conversion right is subject to the conditions
that: (i) if, after June 6, 2016,
Manulife determines that there would be less than 1,000,000 Series
3 Preferred Shares outstanding on June 20,
2016, then all remaining Series 3 Preferred Shares will
automatically be converted into an equal number of Series 4
Preferred Shares on June 20, 2016,
and (ii) alternatively, if, after June 6,
2016, Manulife determines that there would be less than
1,000,000 Series 4 Preferred Shares outstanding on June 20, 2016, then no Series 3 Preferred Shares
will be converted into Series 4 Preferred Shares. In either case,
Manulife will give written notice to that effect to any registered
holders of Series 3 Preferred Shares affected by the preceding
minimums on or before June 13,
2016.
The dividend rate applicable to the Series 3 Preferred Shares
for the 5-year period commencing on June 20,
2016, and ending on June 19,
2021, and the dividend rate applicable to the Series 4
Preferred Shares for the 3-month period commencing on June 20, 2016, and ending on September 19, 2016, will be determined and
announced by way of a news release on May
24, 2016. Manulife will also give written notice of these
dividend rates to the registered holders of Series 3 Preferred
Shares.
Beneficial owners of Series 3 Preferred Shares who wish to
exercise their right of conversion should instruct their broker or
other nominee to exercise such right before 5:00 p.m. (EDT) on June 6,
2016. Conversion inquiries should be directed to Manulife's
Registrar and Transfer Agent, CST Trust Company, at
1-800-387-0825.
Subject to certain conditions described in the Prospectus,
Manulife may redeem the Series 3 Preferred Shares, in whole or in
part, on June 19, 2021 and on
June 19 every five years thereafter
and may redeem the Series 4 Preferred Shares, in whole or in part,
after June 20, 2016.
The Toronto Stock Exchange ("TSX") has conditionally approved
the listing of the Series 4 Preferred Shares effective upon
conversion. Listing of the Series 4 Preferred Shares is subject to
Manulife fulfilling all the listing requirements of the TSX and,
upon approval, the Series 4 Preferred Shares will be listed on the
TSX under the trading symbol "MFC.PR.P".
The Series 3 Preferred Shares and the Series 4 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
Manulife Financial Corporation is a leading international
financial services group providing forward-thinking solutions to
help people with their big financial decisions. We operate as
John Hancock in the United States, and Manulife
elsewhere. We provide financial advice, insurance and wealth
and asset management solutions for individuals, groups and
institutions. At the end of 2015, we had approximately 34,000
employees, 63,000 agents, and thousands of distribution partners,
serving 20 million customers. At the end of March 2016, we had $904
billion (US$697 billion) in
assets under management and administration, and in the previous 12
months we made more than $24.9
billion in benefits, interest and other payments to our
customers. Our principal operations are in Asia, Canada
and the United States where we
have served customers for more than 100 years. With our
global headquarters in Toronto,
Canada, we trade as 'MFC' on the Toronto, New
York, and the Philippine stock exchanges and under '945' in
Hong Kong. Follow Manulife on Twitter @ManulifeNews or visit
www.manulife.com or www.johnhancock.com.
SOURCE Manulife Financial Corporation