Manulife Financial Corporation has announced (although not yet on their website):
that after having taken into account all election notices received by the March 4, 2020 deadline for conversion of its currently outstanding 10,000,000 Non-cumulative Rate Reset Class 1 Shares Series 19 (the “Series 19 Preferred Shares”) (TSX: MFC.PR.N) into Non-cumulative Floating Rate Class 1 Shares Series 20 of Manulife (the “Series 20 Preferred Shares”), the holders of Series 19 Preferred Shares are not entitled to convert their Series 19 Preferred Shares into Series 20 Preferred Shares. There were 110,669 Series 19 Preferred Shares elected for conversion, which is less than the minimum one million shares required to give effect to conversions into Series 20 Preferred Shares.
As announced by Manulife on February 19, 2020, after March 19, 2020, holders of Series 19 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 March 20, 2020, and ending on March 19, 2025, will be 3.675% per annum or $0.229688 per share per quarter, being equal to the sum of the five-year Government of Canada bond yield as at February 19, 2020, plus 2.30%, as determined in accordance with the terms of the Series 19 Preferred Shares.
Subject to certain conditions described in the prospectus supplement dated November 26, 2014 relating to the issuance of the Series 19 Preferred Shares, Manulife may redeem the Series 19 Preferred Shares, in whole or in part, on March 19, 2025 and on December 19 every five years thereafter.
MFC.PR.N is a FixedReset, 3.80%+230, that commenced trading 2014-12-3 after being announced 2014-11-26. The company provided notice of extension 2020-2-3. The issue will reset at 3.675% effective 2020-3-20. It is tracked by HIMIPref™ and is assigned to the FixedReset – Insurance non-NVCC subindex.
It is interesting to note that the recent declines in GOC-5 yields has actually resulted in an increase in the yield-spread between the notional non-callable MFC FixedReset and GOC-5 according to Implied Volatility Analysis:
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This entry was posted on Thursday, March 5th, 2020 at 7:15 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.N : No Conversion To FloatingReset
Manulife Financial Corporation has announced (although not yet on their website):
MFC.PR.N is a FixedReset, 3.80%+230, that commenced trading 2014-12-3 after being announced 2014-11-26. The company provided notice of extension 2020-2-3. The issue will reset at 3.675% effective 2020-3-20. It is tracked by HIMIPref™ and is assigned to the FixedReset – Insurance non-NVCC subindex.
It is interesting to note that the recent declines in GOC-5 yields has actually resulted in an increase in the yield-spread between the notional non-callable MFC FixedReset and GOC-5 according to Implied Volatility Analysis:
Click for Big
Click for Big
This entry was posted on Thursday, March 5th, 2020 at 7:15 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.