Manulife Financial Corporation announces Dividend Rates on Non-cumulative Rate Reset Class 1 Shares Series 15 and Non-cumulative Floating Rate Class 1 Shares Series 16

Rhea-AI Summary

Manulife Financial announced new dividend rates for its Series 15 and Series 16 Preferred Shares. The Series 15 Preferred Shares will have a fixed rate of 5.77500% per annum for five years starting June 20, 2024, equivalent to $0.360938 per share quarterly. The Series 16 Preferred Shares, which may be issued upon conversion of Series 15 shares, will have a floating rate of 7.03200% annually for the three-month period starting June 20, 2024, equivalent to $0.443113 per share quarterly. Conversion requests must be made by June 4, 2024. The Series 16 shares are conditionally approved for listing on the TSX under the symbol MFC.PR.S.

Positive

• Series 15 Preferred Shares will offer a fixed dividend rate of 5.77500% per annum, providing stable returns.
• Series 16 Preferred Shares offer a competitive floating rate of 7.03200% annually for the initial period.
• The Toronto Stock Exchange has conditionally approved the listing of the Series 16 Preferred Shares, which adds potential liquidity and marketability.
• Clear instructions and deadlines for converting Series 15 to Series 16 Preferred Shares provide transparency to investors.

Negative

• Series 15 and Series 16 Preferred Shares are not registered in the United States, limiting their marketability to U.S. investors.
• The Series 16 Preferred Shares' floating rate is subject to quarterly adjustments, introducing potential volatility in dividend income.
• The listing of Series 16 Preferred Shares is conditional and subject to meeting all TSX listing requirements, adding an element of uncertainty.

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

TORONTO, May 21, 2024 /PRNewswire/ - Manulife Financial Corporation ("Manulife") today announced the applicable dividend rates for its Non-cumulative Rate Reset Class 1 Shares Series 15 (the "Series 15 Preferred Shares") (TSX: MFC.PR.L) and Non-cumulative Floating Rate Class 1 Shares Series 16 (the "Series 16 Preferred Shares").

With respect to any Series 15 Preferred Shares that remain outstanding after June 19, 2024, holders thereof will be entitled to receive fixed rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of Manulife and subject to the provisions of the Insurance Companies Act (Canada). The dividend rate for the five-year period commencing on June 20, 2024, and ending on June 19, 2029, will be 5.77500% per annum or $0.360938 per share per quarter, being equal to the sum of the five-year Government of Canada bond yield as at May 21, 2024, plus 2.16%, as determined in accordance with the terms of the Series 15 Preferred Shares.

With respect to any Series 16 Preferred Shares that may be issued in connection with the conversion of the Series 15 Preferred Shares into the Series 16 Preferred Shares, holders thereof will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, calculated on the basis of the actual number of days elapsed in each quarterly floating rate period divided by 365, as and when declared by the Board of Directors of Manulife and subject to the provisions of the Insurance Companies Act (Canada). The dividend rate for the three-month period commencing on June 20, 2024, and ending on September 19, 2024, will be 1.77245% (7.03200% on an annualized basis) or $0.443113 per share, being equal to the sum of the three-month Government of Canada Treasury bill yield as at May 21, 2024, plus 2.16%, as determined in accordance with the terms of the Series 16 Preferred Shares.

Beneficial owners of Series 15 Preferred Shares who wish to exercise their right of conversion should instruct their broker or other nominee to exercise such right before 5:00 p.m. (Toronto time) on June 4, 2024. Conversion inquiries should be directed to Manulife's Registrar and Transfer Agent, TSX Trust Company, at 1‑800‑783‑9495.

The Toronto Stock Exchange ("TSX") has conditionally approved the listing of the Series 16 Preferred Shares effective upon conversion. Listing of the Series 16 Preferred Shares is subject to Manulife fulfilling all the listing requirements of the TSX and, upon approval, the Series 16 Preferred Shares will be listed on the TSX under the trading symbol "MFC.PR.S".

The Series 15 Preferred Shares and the Series 16 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

Manulife Financial Corporation is a leading international financial services provider, helping 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 2023, we had more than 38,000 employees, over 98,000 agents, and thousands of distribution partners, serving over 35 million customers. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges, and under '945' in Hong Kong.  

Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com. 

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SOURCE Manulife Financial Corporation

FAQ

What is the dividend rate for Manulife Series 15 Preferred Shares starting June 2024?

The dividend rate for Manulife Series 15 Preferred Shares commencing June 20, 2024, is 5.77500% per annum.

What is the quarterly dividend per share for Manulife Series 15 Preferred Shares?

The quarterly dividend for Manulife Series 15 Preferred Shares is $0.360938 per share.

What is the dividend rate for Manulife Series 16 Preferred Shares for the first three months?

The dividend rate for Manulife Series 16 Preferred Shares for the period starting June 20, 2024, to September 19, 2024, is 1.77245% (7.03200% annualized).

When is the conversion deadline for Manulife Series 15 to Series 16 Preferred Shares?

The conversion deadline is 5:00 p.m. (Toronto time) on June 4, 2024.

Under what symbol will Manulife Series 16 Preferred Shares be listed on the TSX?

Manulife Series 16 Preferred Shares will be listed under the symbol MFC.PR.S.