An anonymous director reports
MANULIFE FINANCIAL CORPORATION ANNOUNCES RESULTS OF CONVERSION PRIVILEGE OF NON-CUMULATIVE RATE RESET CLASS 1 SHARES SERIES 17
Manulife Financial Corp., after having taken into account all election notices received by the Dec. 4, 2019, deadline for conversion of its currently outstanding 14 million non-cumulative rate-reset Class 1 shares, Series 17, into non-cumulative floating-rate Class 1 shares, Series 18, of Manulife, will not convert its Series 17 preferred shares into Series 18 preferred shares. There were 227,435 Series 17 preferred shares elected for conversion, which is less than the minimum one million shares required to give effect to conversions into Series 18 preferred shares.
As announced by Manulife on Nov. 20, 2019, after Dec. 19, 2019, holders of Series 17 preferred shares will be entitled to receive fixed-rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the board of directors of Manulife and subject to the provisions of the Insurance Companies Act (Canada). The dividend rate for the five-year period commencing on Dec. 20, 2019, and ending on Dec. 19, 2024, will be 3.8 per cent per annum, or 23.750 cents per share per quarter, being equal to the sum of the five-year government of Canada bond yield as at Nov. 20, 2019, plus 2.36 per cent, as determined in accordance with the terms of the Series 17 preferred shares.
Subject to certain conditions described in the prospectus supplement dated Aug. 11, 2014, relating to the issuance of the Series 17 preferred shares, 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.
Manulife Financial Corp.
Manulife Financial is a leading international financial services group that helps people make their decisions easier and lives better. With its 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.
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