Manulife completes offering of C$1 billion of Innovative Tier 1 Notes
Torys acted as counsel to Manulife, working with in-house counsel Richard Lococo, Senior Vice President & Deputy General Counsel, David Kerr, Assistant Vice President, Senior Counsel & Assistant Corporate Secretary and Michael Ward, Assistant Vice President & Counsel. The Torys team included Sharon Geraghty, David Seville, Thomas Yeo, Jennifer Lennon, Jon Reay, Rory McGillis and Raymond Archer (securities), Blair Keefe (insurance regulatory) and Jim Welkoff and Catrina Card (tax).
On July 10, 2009, Manulife Financial Capital Trust II (the Trust), a trust wholly owned by The Manufacturers Life Insurance Company (MLI), issued C$1 billion of 7.405% Manulife Financial Capital Trust II Notes-Series 1 due December 31, 2108 (MaCS II-Series 1). 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 is fixed at 7.405% annually. 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. 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 MaCS II-Series 1 qualify as Tier 1 capital of MLI for regulatory purposes. An amount equivalent to the net proceeds will be used by Manulife Financial Corporation ("Manulife") to acquire liquid assets for possible future retirement of amounts outstanding under MFC's credit facility or for general corporate purposes. The MaCS II-Series 1 were offered through an underwriter syndicate led by RBC Capital Markets and National Bank Financial.
Futher information is found on Manulife's website.