OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating of “bbb+” to the recently issued USD $750 million 4.061% subordinated notes due 2032 of Manulife Financial Corporation (MFC) (Toronto, Canada). The outlook assigned to the Credit Rating is stable.
The proceeds from the offering will be utilized for general corporate purposes, including future refinancing. Holders of the subordinated notes will receive an initial annual yield of 4.061% paid semi-annually ending Feb. 24, 2027 (reset date). After the reset date, the coupon will reset at a rate equal to the then 5-year Mid-Swap Rate plus 1.647%. The notes will mature on Feb. 24, 2032. Despite the new issuance, MFC’s financial leverage remains within the range that supports the company’s current Long-Term Issuer Credit Ratings.
MFC reported net income attributed to shareholders of CAD 2,929 million for 2016, based on International Financial Reporting Standards.
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