Manulife Financial Corporation issued 10 million Non-cumulative Rate Reset Class 1 Shares Series 19, at a price of $25 per share to raise gross proceeds of $250 million.
The offering, announced November 26, 2014, was underwritten on a bought deal basis by a syndicate of investment dealers co-led by Scotia Capital Inc., CIBC World Markets and RBC Capital Markets and which included BMO Capital Markets, TD Securities Inc., National Bank Financial Inc., Desjardins Securities Inc., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., Manulife Securities Incorporated and Laurentian Bank Securities Inc.
The preferred shares were issued to the public at a price of $25.00 per preferred share and holders will be entitled to receive noncumulative preferential quarterly dividends as and when declared by the board of directors of Manulife, to yield 3.80 per cent annually commencing on the closing date and ending on, and including, March 19, 2020. Thereafter, the dividend rate will reset every five years to be equal to the 5-Year Government of Canada Bond Yield plus 2.30 per cent. Subject to certain conditions, holders may elect to convert any or all of their preferred shares into an equal number of Non-Cumulative Floating Rate Class A Preferred Shares Series 20 on March 19, 2020, and on March 19 of every fifth year thereafter.
Manulife was represented by an in-house team led by Stephen Sigurdson, Executive Vice-President and General Counsel, and that included Cameron MacDonald, Assistant Vice President, Corporate and Divisional Law. Torys LLP provided external support with a team led by David Seville and that included Jonathan Cescon, David Leith (corporate/securities); Blair Keefe (insurance regulatory); Jerald Wortsman and Catrina Card (tax).
The underwriters were represented by McCarthy Tétrault LLP with a team led by Barry Ryan and that included Andrew Parker, Matthew Appleby and David Badour (business law) and Gabrielle Richards and Douglas Cannon (tax).