{"id":48743,"date":"2017-09-07T22:47:00","date_gmt":"2017-09-08T02:47:00","guid":{"rendered":"https:\/\/prefblog.com\/?p=48743"},"modified":"2025-07-24T22:49:18","modified_gmt":"2025-07-25T02:49:18","slug":"mfc-pr-i-no-conversion-to-floatingreset","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=48743","title":{"rendered":"MFC.PR.I : No Conversion to FloatingReset"},"content":{"rendered":"

Manulife Financial Corporation has announced<\/a>:<\/p>\n

\n

that after having taken into account all election notices received by the September 5, 2017 deadline for conversion of its currently outstanding 10,000,000 Non-cumulative Rate Reset Class 1 Shares Series 9 (the \u201cSeries 9 Preferred Shares\u201d) (TSX: MFC.PR.I) into Non-cumulative Floating Rate Class 1 Shares Series 10 of Manulife (the \u201cSeries 10 Preferred Shares”), the holders of Series 9 Preferred Shares are not entitled to convert their Series 9 Preferred Shares into Series 10 Preferred Shares. There were 193,197 Series 9 Preferred Shares elected for conversion, which is less than the minimum one million shares required to give effect to conversions into Series 10 Preferred Shares.<\/p>\n

As announced by Manulife on August 21, 2017, after September 19, 2017, holders of Series 9 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 September 20, 2017, and ending on September 19, 2022, will be 4.35100% per annum or $0.271938 per share per quarter, being equal to the sum of the five-year Government of Canada bond yield as at August 21, 2017, plus 2.86%, as determined in accordance with the terms of the Series 9 Preferred Shares.<\/p>\n

Subject to certain conditions described in the prospectus supplement dated May 16, 2012 relating to the issuance of the Series 9 Preferred Shares, Manulife may redeem the Series 9 Preferred Shares, in whole or in part, on September 19, 2022 and on September 19 every five years thereafter.<\/p>\n<\/blockquote>\n

It will be recalled that after the announcement the issue would be extended<\/a>, the rate was reset to 4.35100%<\/a> and I recommended against conversion<\/a>.<\/p>\n

MFC.PR.I is now a FixedReset, 4.351%+286, that commenced trading with a 4.40% coupon on 2012-5-24<\/a> after being announced 2012-5-16<\/a>. It is tracked by HIMIPref™ and is included in the FixedReset subindex. <\/p>\n

As this issue is not NVCC compliant, it is analyzed as having a Deemed Retraction<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Manulife Financial Corporation has announced: that after having taken into account all election notices received by the September 5, 2017 deadline for conversion of its currently outstanding 10,000,000 Non-cumulative Rate Reset Class 1 Shares Series …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-48743","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48743","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=48743"}],"version-history":[{"count":1,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48743\/revisions"}],"predecessor-version":[{"id":48744,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/48743\/revisions\/48744"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}