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TORONTO, Feb. 12, 2018 /CNW/ - Manulife Financial
Corporation ("Manulife") today announced a Canadian public offering
of Non-cumulative Rate Reset Class 1 Shares Series 25 ("Series 25
Preferred Shares"). Manulife will issue 10 million Series 25
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 RBC Capital Markets, Scotiabank and TD
Securities and is anticipated to qualify as Tier 1 capital for
Manulife. Manulife has also granted the underwriters an option,
exercisable in whole or in part at any time up to 48 hours prior to
closing, to purchase up to an additional 2 million Series 25
Preferred Shares at the same offering price. The gross proceeds
raised under the offering will be $300
million should this option be exercised in full. The
expected closing date for the offering is February 20, 2018. Manulife intends to file a
prospectus supplement to its December 15,
2017 base shelf prospectus in respect of this issue.
Holders of the Series 25 Preferred Shares will be entitled to
receive a non-cumulative quarterly fixed dividend
yielding 4.70 per cent annually, as and when declared by the
Board of Directors of Manulife, for the initial period ending
June 19, 2023. Thereafter, the
dividend rate will be reset every five years at a rate equal to the
5-year Government of Canada bond
yield plus 2.55 per cent.
Holders of Series 25 Preferred Shares will have the right, at
their option, to convert their shares into Non-cumulative Floating
Rate Class 1 Shares Series 26 ("Series 26 Preferred Shares"),
subject to certain conditions, on June 19,
2023 and on June 19 every five
years thereafter. Holders of the Series 26 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 2.55 per cent.
Manulife intends to use the net proceeds from the offering for
general corporate purposes, including funding the recently
announced redemption of The Manufacturers Life Insurance Company's
outstanding $200 million principal
amount of 2.819% Fixed/Floating Subordinated Debentures due
February 26, 2023.
The Series 25 Preferred Shares and the Series 26 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 that helps people
achieve their dreams and aspirations by putting customers' needs
first and providing the right advice and solutions. We operate
primarily as John Hancock in
the United States and Manulife
elsewhere. We provide financial advice, insurance, as well as
wealth and asset management solutions for individuals, groups and
institutions. At the end of 2017, we had approximately 34,000
employees, 73,000 agents, and thousands of distribution partners,
serving more than 26 million customers. As of December 31, 2017, we had over $1.04 trillion (US$829.4
billion) in assets under management and administration, and
in the previous 12 months we made $26.7
billion in 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.
SOURCE Manulife Financial Corporation