MFC.PR.M Firm On Good Volume

Manulife Financial Corporation has announced:

that it has completed its offering of 14 million Non-cumulative Rate Reset Class 1 Shares Series 17 (the “Series 17 Preferred Shares”) at a price of $25 per share to raise gross proceeds of $350 million.

The offering was underwritten by a syndicate of investment dealers co-led by Scotia Capital Inc., RBC Capital Markets and TD Securities. The Series 17 Preferred Shares commence trading on the Toronto Stock Exchange today under the ticker symbol MFC.PR. M.

The Series 17 Preferred Shares were issued under a prospectus supplement dated August 11, 2014 to Manulife’s short form base shelf prospectus dated June 23, 2014.

MFC.PR.M is a FixedReset, 3.90%+236, announced August 11. It will be tracked by HIMIPref™ and has been assigned to the FixedReset subindex.

The issue traded 1,121,407 shares today (consolidated exchanges) in a range of 24.90-99 before closing at 24.97-99, 10×557. Vital statistics are:

Implied Volatility theory suggests that this issue is priced in-line with the other MFC FixedResets, with a fair value of 25.07. The outlier on the chart, with the highest Issue Reset Spread, is MFC.PR.E, which has been called for redemption.

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Update: On review, I find that I forgot to put a DeemedMaturity entry into the embedded option schedule. This has been fixed.

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