New York Stock Exchange (NYSE)-listed Manulife Financial Corportion (NYSE:MFC) announced that it has priced a public offering in the United States of US$750 million aggregate principal amount of 4.061% subordinated notes due 2032 (the “Notes”) at a public offering price of 100%.
Here are the quick facts about Manulife Financial’s subordinated notes:
The notes will be issued on 24 February 2017
The notes are anticipated to qualify as Tier 2 regulatory capital of the Company.
The Notes are expected to be issued on February 24, 2017 and will bear interest at the rate of 4.061% per year for the period from, and including, the issue date to, but excluding, February 24, 2027, and at a rate per year equal to the 5-Year Mid-Swap Rate plus 1.647% for the period from, and including, the Reset Date, to, but excluding, February 24, 2032.
Manulife financial may, at its option, redeem the Notes, in whole, but not in part, with the prior approval of the Superintendent of Financial Institutions (Canada), on 24 February 2027, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest thereon to, but excluding, the date of redemption.
Manulife may redeem the notes in whole within 90 days
The company may also redeem the Notes, in each case, in whole, but not in part,
with the prior approval of the Superintendent, at any time within 90 days following a specified regulatory event or at any time following a specified tax event, in each case, at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest thereon to, but excluding, the date of redemption.
The offering was made pursuant to a preliminary prospectus supplement, dated 21 February 21 2017, to the company’s registration statement declared effective by the Securities and Exchange Commission on 18 December 2015.
The Manulife intends to use the net proceeds from the sale of the notes for general corporate purposes, including future refinancing requirements. Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are acting as joint book-running managers for the offering. – BusinessNewsAsia.com