Manulife Announces Subordinated Debenture Issue

Makati—(PHStocks)—The Manufacturers Life Insurance Company (MLI), the Canadian insurance company subsidiary of Manulife Financial Corp. (PSE: MFC), intends to issue $750 million principal amount of 2.10% fixed/floating subordinated debentures due 1 June 2025 (the Debentures). MLI intends to file a prospectus supplement to its December 13, 2013 base shelf prospectus in respect of this issue.

The Debentures will bear interest at a fixed rate of 2.10% until 1 June 2020 and thereafter at a rate of 0.72% over the three month CDOR. The Debentures mature on 1 June 2025.

Subject to prior regulatory approval, MLI may redeem the Debentures, in whole or in part, on or after 1 June 2020 at a redemption price equal to par, together with accrued and unpaid interest to the date fixed for redemption. The Debentures will constitute subordinated indebtedness, ranking equally and rateably with all other subordinated indebtedness of MLI from time to time issued and outstanding.

The Debentures will be fully and unconditionally guaranteed on a subordinated basis by Manulife Financial Corporation, as to payment of principal, premium, if any, interest and redemption price, if any.

The offering is being done on a best efforts agency basis by a syndicate co-led by RBC Capital Markets, BMO Capital Markets and Scotiabank Global Banking and Markets and consisting of CIBC World Markets, TD Securities, Bank of America Merrill Lynch, National Bank Financial, HSBC Securities, Desjardins Securities, Canaccord Capital, Laurentian Bank Securities and Manulife Securities Incorporated. The offering is expected to close on 10 March 2015.

MLI intends to use the net proceeds from the offering for general corporate purposes, including future refinancing requirements.

“Our financing activities take into account future refinancing needs. We have over $2 billion in potential refinancing requirements over the next 12 months. We have taken the opportunity to issue subordinated debt in favourable markets,” said Senior Executive Vice President and Chief Financial Officer Steve Roder.

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