TSX/NYSE/PSE: MFC SEHK:945
C$ unless otherwise stated
TORONTO, March 5, 2015 /CNW/ - The Manufacturers Life Insurance Company
("MLI"), the Canadian insurance company subsidiary of Manulife
Financial Corporation, announced today that it intends to issue $750 million principal amount of 2.10% fixed/floating subordinated debentures
due June 1, 2025 (the "Debentures"). MLI intends to file a prospectus
supplement to its December 13, 2013 base shelf prospectus in respect of
The Debentures will bear interest at a fixed rate of 2.10% until June 1,
2020 and thereafter at a rate of 0.72% over the three month CDOR. The
Debentures mature on June 1, 2025.
Subject to prior regulatory approval, MLI may redeem the Debentures, in
whole or in part, on or after June 1, 2020 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, BMO Capital Markets and Scotiabank Global Baking and Markets and consisting of CIBC World Markets, TD Securities, Bank of America Merrill Lynch,
National Bank Financial, HSBC Securities, Desjardins Securities,
Canaccord Capital, Laurentian Bank Securities and Manulife Securities
Incorporated. The offering is expected to close on March 10, 2015.
MLI intends to use the net proceeds from the offering for general
corporate purposes, including future refinancing requirements.
"Our financing activities take into account future refinancing needs. We
have over $2 billion in potential refinancing requirements over the
next 12 months. 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 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.
Manulife is a leading Canada-based financial services group with
principal operations in Asia, Canada and the United States. We operate
as John Hancock in the U.S. and as Manulife in other parts of the
world. We provide strong, reliable, trustworthy and forward-thinking
solutions for our customers' 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. Assets under management by Manulife and its
subsidiaries were approximately C$691 billion (US$595 billion) as at
December 31, 2014.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE,
and under '945' on the SEHK. Manulife can be found on the Internet at manulife.com.
SOURCE Manulife Financial Corporation
For further information:
Sean B. Pasternak