Manulife Financial Corporation has announced:
that after having taken into account all election notices received by the December 5, 2016 deadline for conversion of its currently outstanding 8,000,000 Non-cumulative Rate Reset Class 1 Shares Series 5 (the “Series 5 Preferred Shares”) (TSX: MFC.PR.G) into Non-cumulative Floating Rate Class 1 Shares Series 6 of Manulife (the “Series 6 Preferred Shares”), the holders of Series 5 Preferred Shares are not entitled to convert their Series 5 Preferred Shares into Series 6 Preferred Shares. There were 818,716 Series 5 Preferred Shares elected for conversion, which is less than the minimum one million shares required to give effect to conversions into Series 6 Preferred Shares.
As announced by Manulife on November 21, 2016, after December 19, 2016, holders of Series 5 Preferred Shares will be entitled to receive fixed rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of Manulife and subject to the provisions of the Insurance Companies Act (Canada). The dividend rate for the five-year period commencing on December 20, 2016, and ending on December 19, 2021, will be 3.89100% per annum or $0.243188 per share per quarter, being equal to the sum of the five-year Government of Canada bond yield as at November 21, 2016, plus 2.90%, as determined in accordance with the terms of the Series 5 Preferred Shares.
Subject to certain conditions described in the prospectus supplement dated November 29, 2011 relating to the issuance of the Series 5 Preferred Shares, Manulife may redeem the Series 5 Preferred Shares, in whole or in part, on December 19, 2021 and on December 19 every five years thereafter.
It was previously reported on PrefBlog that MFC.PR.G would be extended; that the reset rate was 3.891% and that I recommended holders not convert.
As this issue is from an insurer and there is no provision for conversion into common shares at the option of the issuer, I consider this to be subject to my Deemed Retraction policy; accordingly I have placed a maturity entry dated 2025-1-31 at par in the call schedule of this instrument for analytical purposes. Note that this approach is due to analysis and there is no contractual provision in the terms of issue for any such maturity.
This entry was posted on Wednesday, December 7th, 2016 at 6:14 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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MFC.PR.G: No Conversion to FloatingReset
Manulife Financial Corporation has announced:
It was previously reported on PrefBlog that MFC.PR.G would be extended; that the reset rate was 3.891% and that I recommended holders not convert.
As this issue is from an insurer and there is no provision for conversion into common shares at the option of the issuer, I consider this to be subject to my Deemed Retraction policy; accordingly I have placed a maturity entry dated 2025-1-31 at par in the call schedule of this instrument for analytical purposes. Note that this approach is due to analysis and there is no contractual provision in the terms of issue for any such maturity.
This entry was posted on Wednesday, December 7th, 2016 at 6:14 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.