Manulife Financial announces conversion rights for series 11 preferreds

By Mary-Katherine Stinson

Lexington, Ky., Jan. 31 – Manulife Financial Corp. announced that holders of its currently outstanding 8 million non-cumulative rate reset class 1 series 11 shares have conversion rights on March 19, according to a notice.

Holders have the option to convert all or part of their series 11 preferred shares on a one-for-one basis into non-cumulative floating rate class 1 series 12 shares of Manulife on that date.

The conversion right must be exercised before 5 p.m. ET on March 6.

The conversion right was triggered by the company’s announcement on Jan. 31 that it does not intend to redeem any of the currently outstanding shares.

The applicable dividend rate for both series 11 and series 12 shares will be announced Feb. 21.

The offer is subject to the following minimums: if determined after March 6 that there would be less than 1 million series 11 shares outstanding on March 19 then all series 11 shares will automatically be converted and alternatively if there would be less than 1 million series 12 shares outstanding on the same date then no series 11 shares will be converted. Written notice will be provided to registered series 11 holders on or before March 13 regarding any shares affected by these minimums.

The series 12 preferred shares have received conditional approval to trade on the Toronto Stock Exchange under the ticker “MFCPrS.”

Conversion inquiries should be directed to Manulife's registrar and transfer agent TSX Trust Co. at 800 783-9495.

Subject to certain conditions described in the prospectus, Manulife may redeem the series 11 preferred shares, in whole or in part, on March 19, 2028 and on March 19 every subsequent five years and may redeem the series 12 preferred shares, in whole or in part, after March 19.

Manulife is a Toronto-based financial services group.

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