C$ unless otherwise
stated TSX/NYSE/PSE: MFC SEHK:
945
TORONTO , June 9, 2022
/CNW/ - Manulife Financial Corporation
("MFC") announced today that it intends to issue
$1 billion principal amount of
7.117% Limited Recourse Capital Notes Series 3 (Subordinated
Indebtedness) (the "Notes"). MFC intends to file a
prospectus supplement to its existing base shelf prospectus in
respect of this issue.
The Notes will bear interest at a fixed rate of 7.117% annually,
payable semi-annually, for the initial period ending on, but
excluding, June 19, 2027.
Thereafter, the interest rate on the Notes will reset every five
years at a rate equal to the prevailing 5-year Government of Canada
Yield plus 3.95%. The Notes mature on June
19, 2082.
In connection with the issuance of the Notes, MFC will issue
1,000,000 Non-Cumulative Fixed Rate Reset Class 1 Shares Series 29
(the "Series 29 Shares") to be held by Computershare Trust
Company of Canada as trustee of
Manulife LRCN Limited Recourse Trust (the "Limited Recourse
Trust"). In case of non-payment of interest on or principal of
the Notes when due, the recourse of each noteholder will be limited
to that holder's proportionate share of the Limited Recourse
Trust's assets in respect of the Notes, which will consist of
Series 29 Shares except in limited circumstances.
Subject to prior regulatory approval, MFC may redeem the Notes,
in whole or in part on not less than 10 nor more than 60 days'
prior notice by MFC, on June 19, 2027
and every five years thereafter during the period from May 19 to and including June 19, commencing in 2032, at a redemption
price equal to par, together with accrued and unpaid interest up
to, but excluding, the date of redemption.
The offering is being done on a best efforts agency basis by a
syndicate co-led by RBC Capital Markets, BMO Capital Markets and
CIBC Capital Markets. The offering is expected to close on
June 16, 2022.
The Notes will be issued under a trust indenture to be dated as
of the closing date of the offering between MFC and BNY Trust
Company of Canada.
MFC intends to use the net proceeds from the offering
for general corporate purposes, including investment in
subsidiaries and potential future redemptions of existing
securities.
Neither the Notes nor the Series 29 Shares have been, nor will
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 under
the Securities Act 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 or in any other
jurisdiction where such offer or solicitation would be
unlawful.
About Manulife
Manulife Financial Corporation is a leading international
financial services provider that helps people make their decisions
easier and lives better. With our global headquarters in
Toronto, Canada, we provide
financial advice and insurance, operating as Manulife across
Canada, Asia, and Europe, and primarily as John Hancock in the
United States. Through Manulife Investment Management, the
global brand for our global wealth and asset management segment, we
serve individuals, institutions, and retirement plan members
worldwide. At the end of 2021, we had more than 38,000 employees,
over 119,000 agents, and thousands of distribution partners,
serving over 33 million customers. Our principal operations are in
Asia and Canada, and the
United States, where we have served customers for more than
160 years. We trade as 'MFC' on the Toronto, New
York, and the Philippine stock exchanges and under '945' in
Hong Kong. In the previous 12
months we made CAD$32.7 billion in
payments to our customers.
Not all offerings are available in all jurisdictions. For
additional information, please visit manulife.com.
SOURCE Manulife Financial Corporation