{"id":14316,"date":"2011-03-07T12:03:15","date_gmt":"2011-03-07T16:03:15","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=14316"},"modified":"2011-03-07T12:03:15","modified_gmt":"2011-03-07T16:03:15","slug":"new-issue-mfc-fixedreset-4-20141","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=14316","title":{"rendered":"New Issue: MFC FixedReset 4.20%+141"},"content":{"rendered":"<p>Manulife Financial <a href=\"http:\/\/www.manulife.com\/public\/news\/detail\/0,,lang=en&#038;artId=146296&#038;navId=630002,00.html\">has announced<\/a>:<\/p>\n<blockquote><p>a Canadian public offering of Non-cumulative Rate Reset Class 1 Shares Series 3 (\u201cSeries 3 Preferred Shares\u201d). Manulife will issue eight million Series 3 Preferred Shares priced at $25 per share to raise gross proceeds of $200 million. The offering will be underwritten by a syndicate of investment dealers led by Scotia Capital Inc. and RBC Dominion Securities Inc. and is anticipated to qualify as Tier 1 capital for Manulife. The expected closing date for the offering is March 11, 2011. Manulife intends to file a prospectus supplement to its September 3, 2010 base shelf prospectus in respect of this issue.<\/p>\n<p>Holders of the Series 3 Preferred Shares will be entitled to receive a non-cumulative quarterly fixed dividend yielding 4.20% annually, as and when declared by the Board of Directors of Manulife, for the initial period ending June 19, 2016. Thereafter, the dividend rate will be reset every five years at a rate equal to the 5-year Government of Canada bond yield plus 1.41%.<\/p>\n<p>Holders of Series 3 Preferred Shares will have the right, at their option, to convert their shares into Non-cumulative Rate Reset Class 1 Shares Series 4 (\u201cSeries 4 Preferred Shares\u201d), subject to certain conditions, on June 19, 2016 and on June 19 every five years thereafter. Holders of the Series 4 Preferred Shares will be entitled to receive non-cumulative quarterly floating dividends, as and when declared by the Board of Directors of Manulife, at a rate equal to the three-month Government of Canada Treasury Bill yield plus 1.41%.<\/p>\n<p>The net proceeds from the offering will be utilized for general corporate purposes, which may include investments in subsidiaries.<\/p><\/blockquote>\n<p>In setting up this issue on HIMIPref&trade; I have assumed that it will not have a <a href=\"http:\/\/www.prefblog.com\/?p=13995\">non-viability contingent capital clause<\/a>, and therefore will be subject to the <a href=\"http:\/\/www.prefblog.com\/?p=13992\">declining cap on non-qualifying Tier 1 Capital<\/a> that I anticipate will be applied to Insurance Holding Companies and that therefore it should have a <a href=\"http:\/\/www.prefshares.com\/glossary.html#hardMaturity\">hardMaturity<\/a> in its call schedule for 2022-1-31.<\/p>\n<p>I hate this. The most important thing in preferred share analysis nowadays is &#8230; guessing what OSFI&#8217;s going to do. <a href=\"http:\/\/www.prefblog.com\/?p=5198\">So much for Pillar 3<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Manulife Financial has announced: a Canadian public offering of Non-cumulative Rate Reset Class 1 Shares Series 3 (\u201cSeries 3 Preferred Shares\u201d). Manulife will issue eight million Series 3 Preferred Shares priced at $25 per share &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-14316","post","type-post","status-publish","format-standard","hentry","category-new-issues"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14316"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/14316\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}