MFC.PR.L Thumped On Light Volume

Manulife Financial Corporation has announced:

that it has completed its offering of 8 million Non-cumulative Rate Reset Class 1 Shares Series 15 (the “Series 15 Preferred Shares”) at a price of $25 per share to raise gross proceeds of $200 million.

The offering was underwritten by a syndicate of investment dealers co-led by Scotia Capital Inc., CIBC World Markets and RBC Capital Markets. The Series 15 Preferred Shares commence trading on the Toronto Stock Exchange today under the ticker symbol MFC.PR.L.

The Series 15 Preferred Shares were issued under a prospectus supplement dated February 18, 2014 to Manulife’s short form base shelf prospectus dated July 18, 2012.

MFC.PR.L is a FixedReset, 3.90%+216, announced February 18. It will be tracked by HIMIPref™ and assigned to the FixedReset index. As it is issued by an Insurance Holding Company and is not compliant with the banks’ NVCC rules, I have added a “Deemed Maturity” entry to the call schedule, dated 2025-1-31, at 25.00.

The issue traded 140,571 shares today in a range of 24.50-68 before closing at 24.50-51, 5×10. Vital statistics are:

Maturity Type : Hard Maturity
Maturity Date : 2025-01-31
Maturity Price : 25.00
Evaluated at bid price : 24.50
Bid-YTW : 4.13 %

4 Responses to “MFC.PR.L Thumped On Light Volume”

  1. adrian2 says:

    Thumped? Somebody’s seen it before… 😉

    This actually seems quite expensive. I come up with a theoretical price of 24.30 for it.

  2. jiHymas says:

    I am advised there’s an Inventory Blow-Out Sale at 24.25

  3. interest earner says:

    You advise that you have added a “Deemed Maturity” entry to the call schedule, dated 2025-1-31, at 25.00 for the MFC.PR.L preferred shares. Why? The first maturity should be in just over five years, should it not?

  4. jiHymas says:

    For a recent brief discussion of “Deemed Maturities”, see the comments to February 14, 2014. The monthly editions of PrefLetter contain longer discussions.

    Also, remember that the potential event in 2019 is a Call, not a maturity. This is an option that is entirely in the control of the issuer and they will only exercise the call if it is good for them; which almost-but-not-quite-certainly means that exercise will be bad for you.

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