Manulife Financial Issues $200M of Preferred Shares

Manulife Financial Corporation issued $200 million of Non-cumulative Rate Reset Class 1 Shares Series 11 (the “Preferred Shares”). The offering was underwritten on a bought deal basis by a syndicate co-led by Scotiabank, RBC Capital Markets and TD Securities Inc. and included BMO Capital Markets, CIBC, National Bank Financial Inc., Desjardins Securities Inc., Canaccord Genuity Corp., HSBC Securities (Canada) Inc., Laurentian Bank Securities Inc. and Manulife Securities Incorporated.

The Preferred Shares were issued to the public at a price of $25.00 per Preferred Share and holders will be entitled to receive non-cumulative preferential quarterly dividends as and when declared by the board of directors of Manulife, to yield 4.00 per cent annually commencing on the closing date and ending on, and including, March 19, 2018.

Thereafter, the dividend rate will reset every five years to be equal to the 5-Year Government of Canada Bond Yield plus 2.61 per cent. Subject to certain conditions, holders may elect to convert any or all of their Preferred Shares into an equal number of Non-Cumulative Floating Rate Class A Preferred Shares Series 12 on March 19, 2018, and on March 19 of every fifth year thereafter.

Manulife Financial Corporation was represented in-house by Stephen Sigurdson, Senior Vice President and General Counsel Canada and David Kerr, Assistant Vice President, Senior Counsel and Assistant Corporate Secretary, and by Torys LLP with a team consisting of David Seville, Jonathan Cescon and David Leith (securities); Blair Keefe (insurance regulatory) and Jim Welkoff and Catrina Card (tax).

The underwriters were represented by McCarthy Tétrault LLP with a team of Barry Ryan, Andrew Parker and Matthew Appleby (business law) and Gabrielle Richards (tax).

Lawyer(s)

Blair W. Keefe Matthew Appleby James W. Welkoff Andrew C. Parker Catrina M. Card David A. Seville Jonathan R. Cescon