C$ unless otherwise stated
TSX/NYSE/PSE: MFC SEHK: 945
TORONTO, May 7, 2020 /CNW/ - Manulife Financial
Corporation ("MFC") announced today that it intends to issue
$1 billion principal amount of 2.237%
fixed/floating subordinated debentures due May 12, 2030 (the "2030 Debentures") and
$1 billion principal amount of 2.818%
fixed/floating subordinated debentures due May 13, 2035 (the "2035 Debentures" and together
with the 2030 Debentures, the "Debentures"). MFC 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%
until May 12, 2025 and thereafter at
a rate of 1.49% over the three-month CDOR. The 2030 Debentures
mature on May 12, 2030. The 2035
Debentures will bear interest at a fixed rate of 2.818% until
May 13, 2030 and thereafter at a rate
of 1.82% over the three-month CDOR. The 2035 Debentures mature on
May 13, 2035.
Subject to prior regulatory approval, MFC 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
MFC 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 efforts 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.
MFC intends to use the net proceeds from the offering 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
Manulife Financial Corporation is a
leading international financial services group that helps people
make their decisions easier and lives better. With our global
headquarters in Toronto, Canada,
we operate as Manulife across our offices in Canada, Asia,
and Europe, and primarily as
John Hancock in the United States. We provide financial
advice, insurance, and wealth and asset management solutions for
individuals, groups and institutions. At the end of 2019, we had
more than 35,000 employees, over 98,000 agents, and thousands of
distribution partners, serving almost 30 million customers. As of
March 31, 2020, we had $1.2 trillion (US$0.8
trillion) in assets under management and administration, and
in the previous 12 months we made $30.4
billion in payments to our customers. Our principal
operations are in Asia,
Canada and the United States where we have served
customers for more than 155 years. We trade as 'MFC' on the
Toronto, New York, and the Philippine stock exchanges
and under '945' in Hong Kong
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SOURCE Manulife Financial Corporation