Manulife Financial says no conversion of series 25 preferreds

By Mary-Katherine Stinson

Lexington, Ky., June 6 – Manulife Financial Corp. announced the results of the conversion privilege for its currently outstanding 10 million non-cumulative rate reset class 1 series 25 shares, according to a notice.

There were 37,044 series 25 preferred shares elected for conversion, which did not meet the minimum one million shares required.

Therefore there will no conversion of the series 25 preferred shares into series 26 preferred shares.

As announced by Manulife on May 23, the dividend rate for the five-year period beginning on June 20 and ending on June 19, 2028 will be 5.942% annually or $0.371375 per share per quarter, being equal to the sum of the five-year government of Canada bond yield as of May 23 plus 255 basis points.

As previously reported, Manulife announced that holders had the option to convert all or part of their series 25 preferred shares on a one-for-one basis into non-cumulative floating rate class 1 series 26 shares of Manulife on June 19.

The conversion right had to be exercised before 5 p.m. ET on June 5.

The conversion right was triggered by the company’s announcement on April 25 that it does not intend to redeem any of the currently outstanding shares.

The offer was subject to the following minimums: if determined after June 5 that there would be less than 1 million series 25 shares outstanding on June 19, then all series 25 shares will automatically be converted; and alternatively, if there would be less than 1 million series 26 shares outstanding on the same date, then no series 25 shares will be converted. Written notice will be provided to registered series 25 holders on or before June 12 regarding any shares affected by these minimums.

Subject to certain conditions described in the prospectus, Manulife may redeem the series 25 preferred shares, in whole or in part, on June 19, 2028 and on June 19 every subsequent five years and may redeem the series 26 preferred shares, in whole or in part, after June 19.

Manulife is a Toronto-based financial services group.

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