John Hancock Announces Refinancing and Redemption of All Outstanding Preferred Shares...

John Hancock Announces Refinancing and Redemption of All Outstanding Preferred
Shares of John Hancock Investors Trust (JHI)

BOSTON, May 20 /PRNewswire-FirstCall/ -- John Hancock Funds announced that
it has restructured $86 million of leverage employed by the John Hancock
Investors Trust (JHI), a leveraged closed-end bond fund.
The Board of Trustees of John Hancock Funds approved a plan whereby a
commercial bank has agreed to provide a senior secured credit facility that
will enable the refinancing. The credit facility will be used to redeem and
replace 100 percent of the outstanding Auction Rate Preferred Securities
(ARPS) of the John Hancock Investors Trust, and to change the form of leverage
from ARPS to debt.
On May 7, John Hancock Funds announced the refinancing of five leveraged
closed-end taxable equity funds, and the redemption of approximately $1.6
billion of outstanding preferred shares issued by those funds: Tax-Advantaged
Dividend Income (HTD), Preferred Income (HPI), Preferred Income II (HPF),
Preferred Income III (HPS), and Patriot Premium Dividend II (PDT).
John Hancock Funds continues to evaluate alternatives to complete the
refinancing of its only remaining leveraged closed-end fund, Income Securities
Trust (JHS), which has $89 million of ARPS outstanding.
"While we are pleased to make today's announcement, we regard this as the
continuation of a project and we will not rest until we have effectively
solved the ARPS illiquidity problem of all of our leveraged closed-end funds
in a manner consistent with the interests of both common and preferred
shareholders," said Keith F. Hartstein, President and CEO of John Hancock
Funds. "Although this solution will entail modest de-leveraging, the expected
net result is a moderate increase in income at the fund level. In addition,
through the refinancing process the ARPS shareholders will gain the liquidity
they desire."
Redemption of the ARPS for JHI will be on a tranche by tranche basis. It
is anticipated that redemptions will be completed in June. Further details on
the redemption schedule will be provided in press releases, and will be posted
on the John Hancock Funds web site, www.jhfunds.com.
About John Hancock Funds
The Boston-based mutual fund business unit of John Hancock Financial
Services, John Hancock Funds manages more than $54.1 billion in open-end
funds, closed-end funds, private accounts, retirement plans and related party
assets for individual and institutional investors at March 31, 2008. John
Hancock Funds are distributed by John Hancock Funds, LLC, member FINRA. For
more information, please visit www.jhfunds.com.
John Hancock Financial Services is a unit of Manulife Financial
Corporation, a leading Canadian-based financial services group serving
millions of customers in 19 countries and territories worldwide. Operating as
Manulife Financial in Canada and Asia, and primarily through John Hancock in
the United States, the company offers clients a diverse range of financial
protection products and wealth management services through its extensive
network of employees, agents and distribution partners. Funds under management
by Manulife Financial and its subsidiaries were Cdn$400 billion (US$389
billion) at March 31, 2008. Manulife Financial Corporation trades as 'MFC' on
the TSX, NYSE and PSE, and under '0945' on the SEHK. Manulife Financial may be
found on the Internet at www.manulife.com.
FORWARD LOOKING STATEMENTS
Certain statements made in this release are forward-looking statements.
Actual future results or occurrences may differ significantly from those
anticipated in any forward-looking statements due to numerous factors. These
include, but are not limited to: changes in securities or financial markets
or general economic conditions, including changes in interest rates for
borrowings, and other risks discussed from time to time in the fund's filings
with the Securities and Exchange Commission. John Hancock and the closed-end
funds managed by John Hancock and its affiliates undertake no responsibility
to update publicly or revise any forward-looking statements.
SOURCE John Hancock Funds

Beth McGoldrick of John Hancock Funds, +1-617-663-4751,
bmcgoldrick@jhancock.com