Manulife Financial Corporation announces results of Conversion Privilege of Non-cumulative Rate Reset Class 1 Shares Series 15

Rhea-AI Summary

Manulife Financial announced the results of the conversion privilege for its 8,000,000 Non-cumulative Rate Reset Class 1 Shares Series 15 (Series 15 Preferred Shares) into Non-cumulative Floating Rate Class 1 Shares Series 16 (Series 16 Preferred Shares). Only 7,209 Series 15 Preferred Shares elected for conversion, falling short of the required one million shares. Consequently, holders of Series 15 Preferred Shares will continue to receive fixed-rate, non-cumulative preferential cash dividends of 5.77500% annually, or $0.360938 per share per quarter, starting June 20, 2024, until June 19, 2029. Manulife retains the option to redeem these shares on June 19, 2029, and every five years thereafter. The Series 15 Preferred Shares are not registered under U.S. securities laws and cannot be offered or sold in the U.S. without proper registration or exemption.

Positive

• Fixed dividend rate of 5.77500% annually for Series 15 Preferred Shares.
• Manulife retains the option to redeem Series 15 Preferred Shares, providing flexibility.
• Dividend rate is based on the sum of the five-year Government of Canada bond yield plus 2.16%.

Negative

• Insufficient shares elected for conversion into Series 16 Preferred Shares, indicating investor interest.
• Series 15 Preferred Shares are not registered in the U.S., limiting their marketability.

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

TORONTO, June 5, 2024 /PRNewswire/ - Manulife Financial Corporation ("Manulife") today announced that after having taken into account all election notices received by the June 4, 2024 deadline for conversion of its currently outstanding 8,000,000 Non-cumulative Rate Reset Class 1 Shares Series 15 (the "Series 15 Preferred Shares") (TSX: MFC.PR.L) into Non-cumulative Floating Rate Class 1 Shares Series 16 of Manulife (the "Series 16 Preferred Shares"), the holders of Series 15 Preferred Shares are not entitled to convert their Series 15 Preferred Shares into Series 16 Preferred Shares. There were 7,209 Series 15 Preferred Shares elected for conversion, which is less than the minimum one million shares required to give effect to conversions into Series 16 Preferred Shares.

As announced by Manulife on May 21, 2024, after June 19, 2024, holders of Series 15 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 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 of May 21, 2024, plus 2.16%, as determined in accordance with the terms of the Series 15 Preferred Shares.

Subject to certain conditions described in the prospectus supplement dated February 18, 2014 relating to the issuance of the Series 15 Preferred Shares, Manulife may redeem the Series 15 Preferred Shares, in whole or in part, on June 19, 2029 and on June 19 every five years thereafter.

The Series 15 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 new dividend rate for Manulife's Series 15 Preferred Shares (MFC)?

The new dividend rate for Manulife's Series 15 Preferred Shares is 5.77500% annually, or $0.360938 per share per quarter, starting June 20, 2024.

Why weren't Manulife's Series 15 Preferred Shares converted into Series 16 Preferred Shares (MFC)?

Less than the required one million shares were elected for conversion; only 7,209 shares opted for conversion, falling short of the threshold.

When can Manulife redeem the Series 15 Preferred Shares (MFC)?

Manulife can redeem the Series 15 Preferred Shares on June 19, 2029, and every five years thereafter, subject to certain conditions.