Manulife Financial Corporation announces results of Conversion Privileges of Class 1 Preferred Shares, Series 3 and Series 4
On June 7, 2021, Manulife Financial Corporation reported the results of its preferred share conversion privileges. A total of 812,380 Series 3 Preferred Shares will convert to Series 4 shares on June 19, 2021, while 1,014,452 Series 4 shares will revert to Series 3 shares. Post-conversion, there will be 6,537,903 Series 3 and 1,462,097 Series 4 shares outstanding. The dividend for Series 3 will be fixed at 2.34800% annually and for Series 4 at 0.38363% for the first three months following the conversion. The shares are not registered in the U.S. under the Securities Act.
- Conversion of 812,380 Series 3 Preferred Shares to Series 4 indicates investor confidence.
- Fixed dividend rate of 2.34800% will provide stable income for Series 3 shareholders.
- Potential dilution of Series 4 Preferred Shares may concern existing shareholders.
C$ unless otherwise stated
TSX/NYSE/PSE: MFC SEHK: 945
TORONTO, June 7, 2021 /PRNewswire/ - Manulife Financial Corporation ("Manulife") today announced that after having taking into account all election notices received by the June 4, 2021 deadline for conversion, 812,380 of its currently outstanding 6,335,831 Non-cumulative Rate Reset Class 1 Shares Series 3 (the "Series 3 Preferred Shares") have been elected for conversion on June 19, 2021, on a one-for-one basis, into Non-cumulative Floating Rate Class 1 Shares Series 4 of Manulife (the "Series 4 Preferred Shares"), and 1,014,452 of its currently outstanding 1,664,169 Series 4 Preferred Shares have been elected for conversion on June 19, 2021, on a one-for-one basis, into Series 3 Preferred Shares.
As a result, on June 19, 2021, Manulife will have 6,537,903 Series 3 Preferred Shares and 1,462,097 Series 4 Preferred Shares issued and outstanding. The Series 3 Preferred Shares and the Series 4 Preferred Shares are listed on the Toronto Stock Exchange under the symbols MFC.PR.F and MFC.PR.P, respectively.
As announced by Manulife on May 21, 2021, after June 19, 2021, holders of Series 3 Preferred Shares 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 (the "Board") and subject to the provisions of the Insurance Companies Act (Canada). The dividend rate for the five-year period commencing on June 20, 2021, and ending on June 19, 2026, will be
As announced by Manulife on May 21, 2021, after June 19, 2021, holders of Series 4 Preferred Shares will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board and subject to the provisions of the Insurance Companies Act (Canada). The dividend rate for the three-month period commencing on June 20, 2021, and ending on September 19, 2021, will be
The Series 3 Preferred Shares and the Series 4 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 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 our global wealth and asset management segment, Manulife Investment Management, serves individuals, institutions and retirement plan members worldwide. At the end of 2020, we had more than 37,000 employees, over 118,000 agents, and thousands of distribution partners, serving over 30 million customers. As of March 31, 2021, we had CAD
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SOURCE Manulife Financial Corporation
FAQ
What is the conversion deadline for Manulife's preferred shares?
What will be the new dividend rate for Series 3 Preferred Shares after conversion?
How many Series 3 and Series 4 shares will be outstanding after the conversion?
What is the dividend rate for Series 4 Preferred Shares for the initial period?
Are the preferred shares registered in the U.S.?
