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Manulife Financial Corp
Symbol MFC
Shares Issued 1,948,859,681
Close 2019-11-08 C$ 26.13
Recent Sedar Documents

Manulife Financial shareholders have conversion right

2019-11-08 17:16 ET - News Release

Mr. Sean Pasternak reports

MANULIFE FINANCIAL CORPORATION ANNOUNCES CONVERSION PRIVILEGE OF NON-CUMULATIVE RATE RESET CLASS 1 SHARES SERIES 17

Manulife Financial Corp. does not intend to exercise its right to redeem all or any of its currently outstanding 14 million non-cumulative rate-reset Class 1 shares, Series 17, preferred shares on Dec. 19, 2019. As a result, subject to certain conditions described in the prospectus supplement dated Aug. 11, 2014, relating to the issuance of the Series 17 preferred shares, the holders of the Series 17 preferred shares have the right, at their option, to convert all or part of their Series 17 preferred shares on a one-for-one basis into non-cumulative floating-rate Class 1 shares, Series 18, of Manulife on Dec. 19, 2019. A formal notice of the right to convert Series 17 preferred shares into Series 18 preferred shares will be sent to the registered holders of the Series 17 preferred shares in accordance with the share conditions of the Series 17 preferred shares. Holders of Series 17 preferred shares are not required to elect to convert all or any part of their Series 17 preferred shares into Series 18 preferred shares. Holders who do not exercise their right to convert their Series 17 preferred shares into Series 18 preferred shares on such date will retain their Series 17 preferred shares, unless automatically converted in accordance with the conditions below.

The foregoing conversion right is subject to the conditions that: (i) if, after Dec. 4, 2019, Manulife determines that there would be fewer than one million Series 17 preferred shares outstanding on Dec. 19, 2019, then all remaining Series 17 preferred shares will automatically be converted into an equal number of Series 18 preferred shares on Dec. 19, 2019, and (ii) alternatively, if, after Dec. 4, 2019, Manulife determines that there would be fewer than one million Series 18 preferred shares outstanding on Dec. 19, 2019, then no Series 17 preferred shares will be converted into Series 18 preferred shares. In either case, Manulife will give written notice to that effect to any registered holders of Series 17 preferred shares affected by the preceding minimums on or before Dec. 11, 2019.

The dividend rate applicable to the Series 17 preferred shares for the five-year period commencing on Dec. 20, 2019, and ending on Dec. 19, 2024, and the dividend rate applicable to the Series 18 preferred shares for the three-month period commencing on Dec. 20, 2019, and ending on March 19, 2020, will be determined and announced by way of a news release on Nov. 20, 2019. Manulife will also give written notice of these dividend rates to the registered holders of Series 17 preferred shares.

Beneficial owners of Series 17 preferred shares who wish to exercise their right of conversion should instruct their broker or other nominee to exercise such right before 5 p.m. Toronto time on Dec. 4, 2019. Conversion inquiries should be directed to Manulife's registrar and transfer agent, AST Trust Company (Canada), at 1-800-783-9495.

Subject to certain conditions described in the prospectus, Manulife may redeem the Series 17 preferred shares, in whole or in part, on Dec. 19, 2024, and on Dec. 19 every five years thereafter, and may redeem the Series 18 preferred shares, in whole or in part, after Dec. 19, 2019.

The Toronto Stock Exchange has conditionally approved the listing of the Series 18 preferred shares, effective upon conversion. Listing of the Series 18 preferred shares is subject to Manulife fulfilling all the listing requirements of the TSX, and, upon approval, the Series 18 preferred shares will be listed on the TSX under the trading symbol MFC.PR.S.

About Manulife Financial Corp.

Manulife Financial is a leading international financial service group that helps people make their decisions easier and lives better. With global headquarters in Toronto, the company operates as Manulife across its offices in Canada, Asia and Europe, and primarily as John Hancock in the United States. It provides financial advice and insurance, as well as wealth and asset management solutions, for individuals, groups and institutions. At the end of 2018, it had more than 34,000 employees, over 82,000 agents and thousands of distribution partners, serving almost 28 million customers.

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