Manulife completes limited recourse capital notes offering
Torys acted as counsel to Manulife with a team that included David Seville, Jonathan Cescon, Michael Murphy and Claire Chapman (corporate/securities), Blair Keefe and Eli Monas (regulatory) and Jerald Wortsman (tax).
On February 19, 2021, Manulife Financial Corporation ("Manulife") successfully completed its previously announced offering of C$2 billion principal amount of 3.375% limited recourse capital notes Series 1 (subordinated indebtedness).
The offering was done on a best efforts agency basis by a syndicate co-led by RBC Capital Markets, BMO Capital Markets, CIBC Capital Markets, Scotiabank and TD Securities.
In connection with the issuance of the notes, Manulife issued 2,000,000 non-cumulative fixed rate reset Class 1 shares Series 27 to be held by Computershare Trust Company of Canada as trustee of a newly formed trust (the "Limited Recourse Trust"). In case of non-payment of interest on or principal of the notes when due, the recourse of each noteholder will be limited to that holder's proportionate share of the Limited Recourse Trust's assets, which will consist of Series 27 shares except in limited circumstances.
Further information can be found on Canada Newswire’s website.
Manulife is a leading international financial services group that provided financial advice, insurance, and wealth and asset management solutions for individuals, groups and institutions. As of December 31, 2020, it had C$1.3 trillion (US$1.0 trillion) in assets under management and administration.