OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of “bbb” to the recently issued CAD 250 million 4.7% Non-cumulative Rate Reset Class 1 Shares Series 25 preferred securities of Manulife Financial Corporation (MFC) (Toronto, Canada). The outlook assigned to the Credit Rating (rating) is stable.
The proceeds from the offering will be utilized for general corporate purposes, including funding the recently announced redemption of the MLI 2.819% Debentures. Holders of the Series 25 Preferred Shares will be entitled to receive a non-cumulative quarterly fixed dividend, if declared, yield of 4.70% annually for the period ending June 19, 2023. Thereafter, the dividend rate will be reset every five years at a rate equal to the Canadian government’s 5-year bond yield plus 2.55%. Despite the new issuance, MFC’s financial leverage remains within the range that supports the company’s current Long-Term IRs.
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