An anonymous director reports
MANULIFE FINANCIAL CORPORATION ANNOUNCES DIVIDEND RATES ON NON-CUMULATIVE RATE RESET CLASS 1 SHARES SERIES 19 AND NON-CUMULATIVE FLOATING RATE CLASS 1 SHARES SERIES 20
Manulife Financial Corp. has released the applicable dividend rates for its non-cumulative rate-reset Class 1 shares, Series 19, and non-cumulative floating-rate Class 1 shares, Series 20.
With respect to any Series 19 preferred shares that remain outstanding after March 19, 2020, holders thereof 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 March 20, 2020, and ending on March 19, 2025, will be 3.6750 per cent per annum or 22.9688 cents per share per quarter, being equal to the sum of the five-year government of Canada bond yield as at Feb. 19, 2020, plus 2.30 per cent, as determined in accordance with the terms of the Series 19 preferred shares.
With respect to any Series 20 preferred shares that may be issued on March 19, 2020, in connection with the conversion of the Series 19 preferred shares into the Series 20 preferred shares, holders thereof will be entitled to receive floating-rate non-cumulative preferential cash dividends on a quarterly basis, calculated on the basis of actual number of days elapsed in each quarterly floating-rate period divided by 365, 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 three-month period commencing on March 20, 2020, and ending on June 19, 2020, will be 0.99259 per cent (3.9380 per cent on an annualized basis) or 24.8148 cents per share, being equal to the sum of the three-month government of Canada treasury bill yield as at Feb. 19, 2020, plus 2.30 per cent, as determined in accordance with the terms of the Series 20 preferred shares.
Beneficial owners of Series 19 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 March 4, 2020. The news release announcing such conversion right was issued on Feb. 3, 2020, and can be viewed on SEDAR or Manulife's website. Conversion inquiries should be directed to Manulife's registrar and transfer agent, AST Trust Company (Canada), at 1-800-783-9495.
The Toronto Stock Exchange has conditionally approved the listing of the Series 20 preferred shares, effective upon conversion. Listing of the Series 20 preferred shares is subject to Manulife fulfilling all the listing requirements of the TSX, and, upon approval, the Series 20 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 its global headquarters in Toronto, Canada, 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, insurance, and wealth and asset management solutions for individuals, groups and institutions. At the end of 2019, it had more than 35,000 employees, over 98,000 agents and thousands of distribution partners, serving almost 30 million customers.
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