TORONTO, July 6 /PRNewswire-FirstCall/ - Manulife Financial announced today
that Manulife Financial Capital Trust II (the "Trust"), a trust wholly-owned
by The Manufacturers Life Insurance Company ("MLI"), will issue $1 billion of
Manulife Financial Capital Trust II Notes - Series 1 due December 31, 2108
("MaCS II - Series 1"). The MaCS II - Series 1 are expected to qualify as Tier
1 capital of MLI for regulatory purposes. The Trust intends to file a final
prospectus with the Canadian securities regulators as soon as possible.
Interest on the MaCS II - Series 1 is payable semi-annually. From the date of
issue to but excluding December 31, 2019, the rate of interest on the MaCS II
- Series 1 will be fixed at 7.405% per annum. Starting on December 31, 2019,
and on every fifth anniversary after such date, the rate of interest on the
MaCS II - Series 1 will be reset as described in the prospectus filed by the
Trust and MLI.
On or after December 31, 2014, the Trust may, at its option and subject to
certain conditions, redeem the MaCS II - Series 1, in whole or in part.
In certain circumstances, the MaCS II - Series 1 or interest thereon may be
automatically exchanged or paid by the issuance of non-cumulative Class 1
Preferred Shares of MLI.
The transaction is expected to close on July 10, 2009. An amount equivalent to
the net proceeds will be used by Manulife Financial Corporation ("MFC") to
acquire liquid assets for possible future retirement of amounts outstanding
under MFC's credit facility or for general corporate purposes. The offering is
not expected to initially result in an increase to MLI's reported MCCSR ratio
(Minimum Continuing Capital and Surplus Requirements for Life Insurance
Companies).
RBC Capital Markets and National Bank Financial are the lead underwriters on
the issue.
The securities have not been and will not be registered in the United States
under the Securities Act of 1933, as amended, and may not be offered, sold or
delivered in the United States or to U.S. Persons absent registration or
applicable exemption from the registration requirement of such Act. This press
release does not constitute an offer to sell or a solicitation to buy the
securities in the United States.
About Manulife Financial
Manulife Financial is 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 customers 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$405 billion
(US$322 billion) as at March 31, 2009.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and
under '945' on the SEHK. Manulife Financial can be found on the Internet at
www.manulife.com.
SOURCE Manulife Financial
Media inquiries: Laurie Lupton, (416) 852-7792, laurie_lupton@manulife.com;
David Paterson, (w) (416) 852-7792, (cell) (416) 456-3621,
david_paterson@manulife.com; Investor Relations: Amir Gorgi, 1-800-795-9767,
investor_relations@manulife.com
