By Cristal Cody
Prospect News, Nov. 29 - Manulife Financial Corp. (/BBB/DBRS: Pfd-2) announced that it sold C$200 million, or 8 million, series 5 non-cumulative rate rest class 1 preferred stock on Tuesday.
The preferreds priced at C$25 each and have a dividend rate of 4.4% a year for the initial period ending Dec. 19, 2016. The dividend rate will then be reset every five years at a rate equal to the five-year Government of Canada bond yield plus 290 basis points.
RBC Capital Markets and Scotia Capital Inc. were the lead managers of the deal.
The sale includes a greenshoe of 2 million preferreds.
Proceeds will be used for general corporate purposes, which may include investments in subsidiaries.
Manulife Financial is a Toronto-based financial services and reinsurance group that operates in 22 countries and territories.
| Issuer: | Manulife Financial Corp.
|
| Amount: | C$200 million
|
| Greenshoe: | C$50 million
|
| Securities: | Non-cumulative rate rest class 1 preferred shares
|
| Bookrunners: | RBC Capital Markets and Scotia Capital Inc.
|
| Dividend: | Initially 4.4%; rate will be reset on Dec. 19, 2016 and every five years thereafter to five-year Government of Canada bond yield plus 290 bps
|
| Price: | C$25 per share
|
| Pricing date: | Nov. 29
|
| Settlement date: | Dec. 6
|
| Ratings: | Standard & Poor's: BBB
|
| DBRS: Pfd-2
|
| Distribution: | Canada
|
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