Manulife announces Subordinated Debenture issue

By a News Reporter-Staff News Editor at Investment Weekly News -- Manulife Financial Corporation ("MFC") announced that it intends to issue $750 million principal amount of 3.049% fixed/floating subordinated debentures due August 20, 2029 (the "Debentures"). MFC intends to file a prospectus supplement to its existing base shelf prospectus in respect of this issue.

The Debentures will bear interest at a fixed rate of 3.049% until August 20, 2024 and thereafter at a rate of 1.05% over the three month CDOR. The Debentures mature on August 20, 2029.

Subject to prior regulatory approval, MFC may redeem the Debentures, in whole or in part, on or after August 20, 2024 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 MFC from time to time issued and outstanding.

The offering is being done on a best efforts agency basis by a syndicate co-led by RBC Capital Markets, CIBC Capital Markets and TD Securities and that includes BMO Capital Markets, Scotiabank Global Banking and Markets, National Bank Financial, Bank of America Merrill Lynch, HSBC Securities, Manulife Securities Incorporated, Desjardins Securities and Laurentian Bank Securities. The offering is expected to close on August 18, 2017.

MFC intends to use the net proceeds from the offering for general corporate purposes, including funding the announced redemption of MFC's 7.768% Medium Term Notes due April 8, 2019 on October 6, 2017 and other future financing requirements.

Keywords for this news article include: Investing, Financial Companies, Investment and Finance, Life Insurance Companies, Manulife Financial Corporation.

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