Manulife announces intention to redeem 3.317% Fixed/Floating Subordinated Debentures

Rhea-AI Summary

Manulife Financial Corporation (MFC) announced its plan to redeem all outstanding C$600 million 3.317% Fixed/Floating Subordinated Debentures on May 9, 2023, at par. This redemption will include accrued and unpaid interest up to the redemption date. The formal notice will be provided to debenture holders as per MFC's Trust Indenture. Following the redemption, interest on the Debentures will cease. MFC, headquartered in Toronto, operates in financial services, offering advice and insurance under the Manulife and John Hancock brands worldwide, serving over 34 million customers.

Positive

• Redeeming C$600 million in debentures strengthens MFC's balance sheet.
• The redemption at par indicates no loss incurred for the company.

Negative

• None.

News Market Reaction – MFC

-0.75%

-0.75% Session move

In the trading session that priced this news, MFC declined 0.75%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

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C$ unless otherwise stated                                            TSX/NYSE/PSE: MFC     SEHK: 945

TORONTO, April 4, 2023 /PRNewswire/ - Manulife Financial Corporation ("MFC") today announced its intention to redeem at par on May 9, 2023 all of its outstanding $600,000,000 principal amount of 3.317% Fixed/Floating Subordinated Debentures (the "Debentures") due May 9, 2028. The Debentures are redeemable at MFC's option on or after May 9, 2023 at a redemption price per Debenture equal to par, together with accrued and unpaid interest to but excluding the date of redemption. Formal notice will be delivered to holders of Debentures in accordance with MFC's Trust Indenture.

Interest on the Debentures will cease to accrue on the redemption date.

About Manulife

Manulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our Global Wealth and Asset Management segment, we serve individuals, institutions, and retirement plan members worldwide. At the end of 2022, we had more than 40,000 employees, over 116,000 agents, and thousands of distribution partners, serving over 34 million customers. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong.

Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.

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SOURCE Manulife Financial Corporation

FAQ

When will MFC redeem its subordinated debentures?

MFC will redeem its subordinated debentures on May 9, 2023.

How much is MFC planning to redeem in debentures?

MFC plans to redeem C$600 million in subordinated debentures.

What is the interest rate on the MFC debentures being redeemed?

The interest rate on the debentures being redeemed is 3.317%.

What will happen to the interest on MFC's subordinated debentures after redemption?

Interest on the debentures will cease to accrue on the redemption date.