An anonymous director reports
MANULIFE ANNOUNCES SUBORDINATED DEBENTURE ISSUE
Manulife Financial Corp. intends to issue $1-billion principal amount of 2.237 per cent fixed/floating subordinated debentures due May 12, 2030, and $1-billion principal amount of 2.818 per cent fixed/floating subordinated debentures due May 13, 2035. Manulife intends to file prospectus supplements to its existing base-shelf prospectus in respect of these issues.
The 2030 debentures will bear interest at a fixed rate of 2.237 per cent until May 12, 2025, and thereafter at a rate of 1.49 per cent over the three-month CDOR (Canadian-dollar offered rate). The 2030 debentures mature on May 12, 2030. The 2035 debentures will bear interest at a fixed rate of 2.818 per cent until May 13, 2030, and thereafter at a rate of 1.82 per cent over the three-month CDOR. The 2035 debentures mature on May 13, 2035.
Subject to prior regulatory approval, Manulife may redeem the 2030 debentures, in whole or in part, on or after May 12, 2025, at a redemption price equal to par and may redeem the 2035 debentures, in whole or in part, on or after May 13, 2025, to, but excluding, May 13, 2030, at a redemption price equal to the greater of: (i) the Canada yield price; and (ii) par, and on or after May 13, 2030, at a redemption price equal to par, together in each case with accrued and unpaid interest to the date fixed for redemption. The debentures will constitute subordinated indebtedness, ranking equally and rateably with all other subordinated indebtedness of Manulife from time to time issued and outstanding (other than subordinated indebtedness, which has been further subordinated in accordance with its terms).
The offering is being done on a best effort agency basis by a syndicate co-led by RBC Capital Markets, Scotiabank Global Banking and Markets, and TD Securities. The offering is expected to close on May 12, 2020.
Manulife intends to use the net proceeds from the offering for general corporate purposes, including future refinancing requirements.
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, Canada, it 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.
© 2021 Canjex Publishing Ltd. All rights reserved.