By Cristal Cody
Prospect News, May 16 - Manulife Financial Corp. said on Wednesday that it sold C$250 million of non-cumulative rate reset shares that yield a 4.4% annual dividend for the initial period ending Sept. 19, 2017.
The company sold 10 million shares of the series 9 class 1 preferred stock (/BBB/DBRS: Pfd-2) at C$25.00 per share.
Scotia Capital Inc., CIBC World Markets and RBC Capital Markets Corp. were the lead managers.
The dividend rate will reset every five years at a rate equal to the five-year Government of Canada bond yield plus 286 basis points.
Proceeds will be used for investments in subsidiaries to partially fund the proposed redemption of Manulife Financial Capital Trust securities on June 30.
Manulife Financial is a Toronto-based financial services group.
| Issuer: | Manulife Financial Corp.
|
| Amount: | C$250 million, or 10 million shares
|
| Maturity: | Sept. 19, 2017
|
| Securities: | Non-cumulative rate reset preferred shares
|
| Bookrunners: | Scotia Capital Inc., CIBC World Markets, RBC Capital Markets Corp.
|
| Dividend: | 4.4%
|
| Price: | C$25.00 per share
|
| Pricing date: | May 16
|
| Settlement date: | May 24
|
| Ratings: | Standard & Poor's: BBB
|
| DBRS: Pfd-2
|
| Distribution: | Canada
|
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