Manulife to convert parts of two series of class 1 preferred shares on June 19

By Rebecca Melvin

New York, June 7 – Manulife Financial Corp. announced that 812,380 of its currently outstanding 6,335,831 non-cumulative rate reset class 1 shares series 3 and 1,014,452 of its currently outstanding 1,664,169 series 4 preferred shares have been elected for conversion on June 19, on a one-for-one basis, according to a company release.

The series 3 shares will be converted into non-cumulative floating rate class 1 shares series 4 and the and the series 4 shares will be convertible into series 3 preferred shares.

The results were determined after all election notices were received by the June 4 deadline.

As a result, Manulife will have 6,537,903 series 3 preferred shares and 1,462,097 series 4 preferred shares issued and outstanding.

The Regulation S shares are listed on the Toronto Stock Exchange under the symbols “MFCPrF” and “MFCPrP,” respectively.

As announced on May 21, 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 and subject to the provisions of the Insurance Companies Act (Canada). The dividend rate for the five-year period commencing on June 20, and ending on June 19, 2026, will be 2.348% per year or C$0.146750 per share per quarter, being equal to the sum of the five-year Government of Canada bond yield as at May 21, plus 141 basis points.

In addition, holders of the 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, and ending on Sept. 19, will be 0.38363% (1.522% on an annualized basis) or C$0.095908 per share, being equal to the sum of the three-month Government of Canada Treasury bill yield as at May 21, plus 141 bps, as determined in accordance with the terms of the series 4 preferred shares.

Manulife is a financial services group based in Toronto.

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