Published on 2/14/2012 in the Prospect News Canadian Bonds Daily.
New Issue: Manufacturers Life Insurance sells C$500 million 4.165% 10-year debentures at par
By Cristal Cody
Prospect News, Feb. 14 - Manulife Financial Corp. affiliate Manufacturers Life Insurance Co. sold C$500 million of 4.165% 10-year subordinated debentures (DBRS: A) at par to yield 4.166% on Tuesday, a informed bond source said.
The debentures priced at a spread of 270 basis points over the Canadian bond curve.
The deal was launched with the fixed size of C$500 million on guidance of 272 bps, plus or minus 2 bps.
The debentures will convert to a floating rate of 245 bps over the three-month Canadian Dealer Offered Rate on June 1, 2017.
BMO Capital Markets Corp. and RBC Capital Markets Corp. were the lead managers. Co-managers were CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., Bank of America Merrill Lynch, National Bank Financial Inc., HSBC Securities (Canada), Desjardins Securities Inc., Laurentian Bank Securities, Inc., Canaccord Capital Corp. and Manulife Securities.
Proceeds will be used for general corporate purposes.
Manufacturers Life Insurance is a unit of Toronto-based financial services and reinsurance company Manulife Financial.
| Issuer: | Manufacturers Life Insurance Co.
|
| Guarantor: | Manulife Financial Corp.
|
| Amount: | C$500 million
|
| Maturity: | June 1, 2022
|
| Securities: | Fixed- to floating-rate subordinated debentures
|
| Bookrunners: | BMO Capital Markets Corp., RBC Capital Markets Corp.
|
| Co-managers: | CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., Bank of America Merrill Lynch, National Bank Financial Inc., HSBC Securities (Canada), Desjardins Securities Inc., Laurentian Bank Securities, Inc., Canaccord Capital Corp., Manulife Securities
|
| Coupon: | 4.165% until June 1, 2017, then converts to floating rate of 245 bps over CDOR
|
| Price: | Par
|
| Yield: | 4.166%
|
| Spread: | 270 bps over Canadian bond curve
|
| Call feature: | June 1, 2017
|
| Pricing date: | Feb. 14
|
| Settlement date: | Feb. 17
|
| Rating: | DBRS: A
|
| Distribution: | Canada
|
| Price talk: | 272 bps, plus or minus 2 bps
|
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