#Canada #Toronto #Financial Services #Manulife #Series 19 Shares

Manulife Financial Corporation Announces Series 19 Preferred Shares Update

On March 5, 2025, Manulife Financial Corporation revealed crucial information about the conversion of its Class 1 Shares Series 19. This announcement comes after a careful evaluation of the election notices submitted by holders of these shares. Specifically, the deadline for conversion, March 4, 2025, marked a significant date for investors watching the shift from Series 19 to Series 20 Preferred Shares.

Unfortunately for some investors, only 3,700 Series 19 Preferred Shares were elected for conversion. This number falls short of the minimum threshold of one million shares required for the transition to Series 20 to take effect, resulting in the continuation of the Series 19 structure. Thus, holders will retain their Series 19 shares and forgo the option to switch to the floating rate Series 20 shares.

Manulife had previously communicated that from March 19, 2025, Series 19 shareholders would be entitled to a fixed-rate non-cumulative preferred cash dividend, which will be paid out quarterly. According to the announcement, the dividend rate for the upcoming five-year period—running from March 20, 2025, to March 19, 2030—has been set at a substantial 5.16900% per annum. This means that investors can expect approximately $0.323063 per share every quarter.

The formulation of this dividend rate derives from the yields of five-year Government of Canada bonds reported on February 18, 2025, enhanced by an additional margin of 2.30% as stipulated in the Series 19 Preferred Shares terms.

In regards to future actions, Manulife retains the right to redeem Series 19 Preferred Shares partially or entirely as of March 19, 2030, and every five years thereafter, offering a layer of strategic financial maneuverability in an evolving market.

It's important for investors to note that the Series 19 shares are not registered under the U.S. Securities Act and cannot be sold or offered in the U.S. or to U.S. persons without proper registration or exemption. This announcement, therefore, serves as a reminder of the complexities involved in cross-border securities transactions and the important regulatory considerations therein.

About Manulife

Manulife Financial Corporation continues to demonstrate its role as a leading financial services provider on an international scale. Headquartered in Toronto, Canada, Manulife offers a suite of financial products extending across Canada, Asia, and Europe, operating as Manulife in many regions and known as John Hancock within the United States. The company prides itself on equipping customers with the tools and insights necessary to make informed financial decisions, ensuring a focus on enhancing customer experiences in life and finance. As of the end of 2024, Manulife boasted a workforce of more than 37,000 employees and 109,000 agents, catering to over 36 million customers worldwide.

This recent announcement adds another layer to Manulife's ongoing narrative of financial responsibility and proactive communication with stakeholders. As the company paves its way through global markets and diverse demographics, maintaining transparency will remain critical in maintaining investor trust and fostering future growth.