Manulife announces Subordinated Debenture issue
Manulife Financial (MFC) has announced plans to issue $1 billion in subordinated debentures due December 6, 2034. The debentures will carry a fixed interest rate of 4.064% until December 6, 2029, after which the rate will shift to 1.25% over Daily Compounded CORRA.
The offering is being managed by a syndicate co-led by RBC Capital Markets, CIBC Capital Markets, and Scotiabank, with an expected closing date of December 6, 2024. Subject to regulatory approval, MFC may redeem the debentures wholly or partially after December 6, 2029 at par value plus accrued interest. The company plans to use the proceeds for general corporate purposes, including subsidiary investments and potential future securities redemptions.
Manulife Financial (MFC) ha annunciato plans per emettere 1 miliardo di dollari in obbligazioni subordinate con scadenza il 6 dicembre 2034. Le obbligazioni avranno un tasso d'interesse fisso del 4,064% fino al 6 dicembre 2029, dopo di che il tasso passerà all'1,25% su CORRA composto giornalmente.
L'offerta è gestita da un sindacato co-guidato da RBC Capital Markets, CIBC Capital Markets e Scotiabank, con una data di chiusura prevista per il 6 dicembre 2024. Soggetta all'approvazione regolamentare, MFC potrebbe riscattare le obbligazioni completamente o parzialmente dopo il 6 dicembre 2029 al valore nominale più gli interessi maturati. L'azienda prevede di utilizzare i proventi per scopi societari generali, inclusi investimenti nelle filiali e potenziali futuri riscatti di titoli.
Manulife Financial (MFC) ha anunciado planes para emitir 1 mil millones de dólares en bonos subordinados que vencen el 6 de diciembre de 2034. Los bonos tendrán una tasa de interés fija del 4,064% hasta el 6 de diciembre de 2029, después de lo cual la tasa cambiará a 1,25% sobre el CORRA compuesto diariamente.
La oferta está siendo gestionada por un sindicato co-liderado por RBC Capital Markets, CIBC Capital Markets y Scotiabank, con una fecha de cierre esperada para el 6 de diciembre de 2024. Sujeto a la aprobación regulatoria, MFC puede redimir los bonos total o parcialmente después del 6 de diciembre de 2029 a su valor nominal más los intereses acumulados. La empresa planea utilizar los ingresos para fines corporativos generales, incluidos inversiones en subsidiarias y posibles futuros rescates de valores.
Manulife Financial (MFC)는 2034년 12월 6일 만기되는 10억 달러의 후순위 채권 발행 계획을 발표했습니다. 이 채권은 2029년 12월 6일까지 고정 이자율 4.064%를 적용하며, 이후에는 일일 복리 CORRA에 대해 1.25%로 변경됩니다.
이번 공모는 RBC 캐피탈 마켓, CIBC 캐피탈 마켓, 스코샤뱅크가 공동으로 주관하며, 예상 마감일은 2024년 12월 6일입니다. 규제 기관의 승인을 조건으로 하여, MFC는 2029년 12월 6일 이후에 액면가와 누적 이자를 포함하여 채권을 전부 또는 일부를 상환할 수 있습니다. 회사는 수익금을 자회사 투자 및 향후 가능성 있는 증권 상환을 포함한 일반 기업 운영 목적으로 사용할 계획입니다.
Manulife Financial (MFC) a annoncé son intention d'émettre 1 milliard de dollars d'obligations subordonnées arrivant à échéance le 6 décembre 2034. Les obligations porteront un taux d'intérêt fixe de 4,064% jusqu'au 6 décembre 2029, après quoi le taux passera à 1,25% sur le CORRA composé quotidiennement.
L'émission est gérée par un syndicat co-dirigé par RBC Capital Markets, CIBC Capital Markets et Scotiabank, avec une date de clôture prévue pour le 6 décembre 2024. Sous réserve de l'approbation réglementaire, MFC peut racheter les obligations en totalité ou partiellement après le 6 décembre 2029 à la valeur nominale plus les intérêts cumulés. L'entreprise prévoit d'utiliser les produits pour des fins corporatives générales, y compris des investissements dans des filiales et d'éventuels rachats futurs de titres.
Manulife Financial (MFC) hat Pläne angekündigt, 1 Milliarde Dollar an nachrangigen Anleihen mit Fälligkeit am 6. Dezember 2034 auszugeben. Die Anleihen werden bis zum 6. Dezember 2029 einen festen Zinssatz von 4,064% tragen, nach dem sich der Zinssatz auf 1,25% über täglich kumulierten CORRA ändern wird.
Das Angebot wird von einem Syndikat geleitet, das von RBC Capital Markets, CIBC Capital Markets und Scotiabank co-geleitet wird, mit einem erwarteten Abschlussdatum vom 6. Dezember 2024. Vorbehaltlich der behördlichen Genehmigung kann MFC die Anleihen nach dem 6. Dezember 2029 ganz oder teilweise zum Nennwert zuzüglich der aufgelaufenen Zinsen einlösen. Das Unternehmen plant, die Erlöse für allgemeine Unternehmenszwecke zu verwenden, einschließlich Investitionen in Tochtergesellschaften und möglichen zukünftigen Rückkäufen von Wertpapieren.
- Successful $1 billion debt raising strengthens capital position
- Competitive fixed interest rate of 4.064% for the first five years
- Flexible redemption options after December 2029
- Increases company's debt obligations and interest expenses
- Higher floating rate exposure after 2029 could increase costs
Insights
Manulife's
The subordinated structure strengthens Manulife's capital position while maintaining financial flexibility. The proceeds earmarked for general corporate purposes and potential redemption of existing securities suggests proactive liability management. This issuance demonstrates Manulife's continued access to capital markets and ability to optimize its funding mix at competitive rates.
C$ unless otherwise stated TSX/NYSE/PSE: MFC SEHK: 945
The prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with this offering will be accessible through SEDAR+ within two business days.
The Debentures will bear interest at a fixed rate of
Subject to prior regulatory approval, MFC may redeem the Debentures, in whole or in part, on or after December 6, 2029 at a redemption price equal to par, together with accrued and unpaid interest to, but excluding, 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, CIBC Capital Markets and Scotiabank. The offering is expected to close on December 6, 2024.
MFC intends to use the net proceeds from the offering of the Debentures for general corporate purposes, including investment in subsidiaries and potential future redemptions of existing securities.
The Debentures have not been and will not be registered in
Access to the prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with the offering of the Debentures is provided in accordance with securities legislation relating to procedures for providing access to a prospectus supplement, a base shelf prospectus and any amendment thereto. The prospectus supplement, the corresponding base shelf prospectus and any amendment thereto in connection with the offering will be accessible within two business days at www.sedarplus.ca. An electronic or paper copy of the prospectus supplement, the corresponding base shelf prospectus and any amendment to the documents may be obtained, without charge, from RBC Capital Markets by email at torontosyndicate@rbccm.com or phone at 416-842-6311, CIBC Capital Markets by email at mailbox.cibcdebtsyndication@cibc.com or phone at 416-594-8515 or Scotiabank by email at syndicate.toronto@scotiabank.com or phone at 416-863-7438.
About Manulife
Manulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in
Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.
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SOURCE Manulife Financial Corporation
FAQ
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