C$ unless otherwise stated
TORONTO, June 17, 2013 /CNW/ - Manulife Financial Corporation
("Manulife") today announced a Canadian public offering of
Non-cumulative Rate Reset Class 1 Shares Series 13 ("Series 13
Preferred Shares"). Manulife will issue 8 million Series 13 Preferred
Shares priced at $25 per share to raise gross proceeds of $200 million.
The offering will be underwritten by a syndicate of investment dealers
co-led by Scotia Capital Inc. and RBC Capital Markets and is
anticipated to qualify as Tier 1 capital for Manulife. The expected
closing date for the offering is June 21, 2013. Manulife intends to
file a prospectus supplement to its July 18, 2012 base shelf prospectus
in respect of this issue.
Holders of the Series 13 Preferred Shares will be entitled to receive a
non-cumulative quarterly fixed dividend yielding 3.80 per cent
annually, as and when declared by the Board of Directors of Manulife,
for the initial period ending September 19, 2018. Thereafter, the
dividend rate will be reset every five years at a rate equal to the
5-year Government of Canada bond yield plus 2.22 per cent.
Holders of Series 13 Preferred Shares will have the right, at their
option, to convert their shares into Non-cumulative Rate Reset Class 1
Shares Series 14 ("Series 14 Preferred Shares"), subject to certain
conditions, on September 19, 2018 and on September 19 every five years
thereafter. Holders of the Series 14 Preferred Shares will be entitled
to receive non-cumulative quarterly floating dividends, as and when
declared by the Board of Directors of Manulife, at a rate equal to the
three-month Government of Canada Treasury Bill yield plus 2.22 per
The net proceeds from the offering will be utilized for general
corporate purposes, including future refinancing requirements.
"Our financing activities take into account future refinancing needs. We
have taken the opportunity to issue preferred shares with favourable
terms," said Senior Executive Vice President and Chief Financial
Officer, Steve Roder.
The Series 13 Preferred Shares and Series 14 Preferred Shares 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$555 billion (US$547
billion) as at March 31, 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