TORONTO, Nov. 26, 2013 /CNW/ - The Manufacturers Life Insurance Company
("MLI"), the Canadian insurance company subsidiary of Manulife
Financial Corporation, announced today that it intends to issue $250
million principal amount of 2.926% fixed/floating subordinated
debentures due November 29, 2023 (the "Debentures"). MLI intends to file a prospectus supplement to its
November 11, 2011 base shelf prospectus in respect of this issue.
"Our financing activities take into account future refinancing needs. We have approximately $1 billion in refinancing requirements through
June 2014. We have taken the opportunity to issue subordinated debt in favourable
markets" said Senior Executive Vice President and Chief Financial
Officer Steve Roder.
The Debentures will bear interest at a fixed rate of 2.926% for five
years and thereafter at a rate of 0.85% over the three month CDOR. The
Debentures mature on November 29, 2023.
Subject to prior regulatory approval, MLI may redeem the Debentures, in
whole or in part, on or after November 29, 2018 at a redemption price
equal to par, together 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 MLI from time to time issued and outstanding.
The Debentures will be fully and unconditionally guaranteed on a
subordinated basis by Manulife Financial Corporation, as to payment of
principal, premium, if any, interest and redemption price, if any.
The offering is being done on a best efforts agency basis by a syndicate
co-led by RBC Capital Markets and BMO Capital Markets and consisting of
CIBC World Markets, Scotiabank, TD Securities, Bank of America Merrill
Lynch, National Bank Financial, HSBC Securities (Canada), Desjardins
Securities, Laurentian Bank Securities, Canaccord Capital and Manulife
Securities. The offering is expected to close on November 29, 2013.
The net proceeds from the offering will be utilized for general
corporate purposes, including future refinancing requirements.
The Debentures 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 Financial
Manulife Financial is a leading Canada-based financial services group
with principal operations in Asia, Canada and the United States.
Clients look to Manulife for strong, reliable, trustworthy and
forward-thinking solutions for their most significant financial
decisions. Our international network of employees, agents and
distribution partners offers financial protection and wealth management
products and services to millions of clients. We also provide asset
management services to institutional customers. Funds under management
by Manulife Financial and its subsidiaries were C$575 billion (US$559
billion) as at September 30, 2013. The Company operates as Manulife
Financial in Canada and Asia and primarily as John Hancock in the
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE,
and under '945' on the SEHK. Manulife Financial can be found on the
Internet at manulife.com.
SOURCE: Manulife Financial Corporation
For further information:
Sean B. Pasternak