Manulife announces intention to redeem 2.389% Fixed/Floating Subordinated Debentures

Rhea-AI Summary

Manulife Financial Corporation announced its plan to redeem its $350 million 2.389% Fixed/Floating Subordinated Debentures on January 5, 2021, at par value. This redemption will include accrued and unpaid interest until the redemption date. The company will provide formal notice to the debenture holders according to its Amended and Restated Trust Indenture. Manulife serves nearly 30 million customers with over $1.3 trillion in assets under management as of September 30, 2020, operating under the trade symbol 'MFC'.

Positive

• Redemption of $350 million in subordinated debentures improves balance sheet liquidity.
• No ongoing interest accrual on redeemed debentures after January 5, 2021, reducing future financial obligations.

Negative

• None.

C$ unless otherwise stated 
TSX/NYSE/PSE: MFC     SEHK: 945

TORONTO, Nov. 18, 2020 /PRNewswire/ - The Manufacturers Life Insurance Company ("MLI") today announced its intention to redeem at par on January 5, 2021 all of its outstanding $350,000,000 principal amount of 2.389% Fixed/Floating Subordinated Debentures (the "Debentures") due January 5, 2026. The Debentures are redeemable at MLI's option on or after January 5, 2021 at a redemption price per Debenture equal to par, together with accrued and unpaid interest to but excluding the date of redemption. Formal notice will be delivered to holders of Debentures in accordance with MLI's Amended and Restated Trust Indenture.

Interest on the Debentures will cease to accrue on the redemption date.

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 September 30, 2020, we had $1.3 trillion (US$943 billion) in assets under management and administration, and in the previous 12 months we made $31.2 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

FAQ

What is Manulife's plan regarding its subordinated debentures?

Manulife plans to redeem $350 million of its 2.389% Fixed/Floating Subordinated Debentures at par on January 5, 2021.

When will Manulife redeem its outstanding debentures?

The redemption will occur on January 5, 2021.

How much is Manulife redeeming in subordinated debentures?

Manulife is redeeming a total of $350 million.

What will happen to interest on the debentures after redemption?

Interest on the debentures will cease to accrue on the redemption date.

What are the benefits of redeeming the debentures for Manulife?

Redeeming the debentures improves Manulife's balance sheet liquidity and reduces future financial obligations.