#Canada #Toronto #Manulife Financial #Rate Reset Shares #Series 17

Manulife's Conversion Privilege Results

On December 5, 2024, Manulife Financial Corporation disclosed critical updates regarding its Non-cumulative Rate Reset Class 1 Shares Series 17. The announcement followed a deadline for shareholders on December 4, 2024, to decide on converting their shares into Non-cumulative Floating Rate Class 1 Shares Series 18.

The outcome shows that only 6,650 Series 17 Preferred Shares were requested for conversion. This number falls significantly short of the minimum threshold of one million shares required to enact the conversion into Series 18. Consequently, holders of the Series 17 shares will retain their current shares and will not transition into the floating rate structure.

Furthermore, beginning December 19, 2024, shareholders of the Series 17 will be entitled to fixed non-cumulative preferential cash dividends. These dividends are expected to be paid on a quarterly basis, subject to approval by the Board of Directors. The announced dividend rate for the subsequent five-year timeline—from December 20, 2024, to December 19, 2029—has been established at 5.54200% per year, translating to $0.346375 per share each quarter. This rate was calculated based on the five-year Government of Canada bond yield as of November 20, 2024, combined with an additional 2.36%.

Manulife retains the option to redeem the Series 17 shares entirely or partially beginning on December 19, 2029, and subsequently every five years thereafter. This possibility is in compliance with conditions outlined in the August 11, 2014, prospectus supplement concerning the issuance of these shares.

It’s significant to note that the Series 17 shares have not been registered in the United States under the Securities Act and cannot be offered or sold to U.S. persons without appropriate registration or an exemption. This roll-out does not constitute an offer to sell or a solicitation for purchase in the U.S.; any proposed public offering must adhere to regulatory guidelines and be conducted through a formal prospectus.

About Manulife Financial Corporation

Manulife stands as a prominent global financial services organization, dedicated to ease and improvement in people's lives through financial advice and insurance. With its headquarters located in Toronto, Canada, the company operates under the name Manulife in Canada, Asia, and Europe, while leveraging the John Hancock brand primarily in the U.S. market. Through Manulife Investment Management, it caters to a diverse clientele encompassing individuals, institutions, and retirement plan members worldwide.

As of the conclusion of 2023, Manulife employed over 38,000 people, supported by approximately 98,000 agents and numerous distribution partners, serving an extensive customer base of over 35 million individuals. The company's stock trades under the ticker 'MFC' on the Toronto, New York, and Philippine stock exchanges and is represented as '945' in Hong Kong.

For further details, potential investors and interested parties should refer to manulife.com for comprehensive information.

In conclusion, while recent developments reflect a waiting period for Series 17 shareholders until they can reap the benefits of the fixed dividend introduced, understanding the implications and processes regarding conversions will be vital for shareholder investment decisions moving forward.