By Cristal Cody
Prospect News, June 17 - Manulife Financial Corp. said on Monday that it priced C$200 million of noncumulative rate-reset class 1 preferred shares to yield a 3.8% dividend through the initial period ending Sept. 19, 2018.
The company sold 8 million shares of the series 13 preferred stock (/BBB+/Pfd-2) at C$25 per share.
Scotia Capital Inc. and RBC Capital Markets were the lead managers.
After the initial period, the dividend will be reset every five years at a rate equal to the five-year Government of Canada bond yield plus 222 basis points.
The offering is expected to qualify as tier 1 capital for Manulife.
The Toronto-based financial services group intends to use the proceeds for general corporate purposes, including future refinancing requirements.
| Issuer: | Manulife Financial Corp.
|
| Amount: | C$200 million
|
| Securities: | Noncumulative rate-reset class 1 preferred shares, series 13
|
| Bookrunners: | Scotia Capital Inc. and RBC Capital Markets
|
| Dividend: | 3.8%; resets every five years beginning Sept. 19, 2018 at 222 bps over five-year Government of Canada bond yield
|
| Price: | C$25 per share
|
| Pricing date: | June 17
|
| Settlement date: | June 21
|
| Ratings: | Standard & Poor's: BBB+
|
| DBRS: Pfd-2
|
| Distribution: | Canada
|
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