By Cristal Cody
Tupelo, Miss., Feb. 18 - Manufacturers Life Insurance Co. priced an upsized C$500 million of 2.811% 10-year fixed-to-floating subordinated debentures at par on Tuesday, according to the company and an informed bond source.
The debentures (/A+/DBRS: A) priced at a spread of 114 basis points versus the interpolated Government of Canada bond curve, on the tight end of guidance of 117 bps, plus or minus 3 bps.
The deal was upsized from C$350 million.
RBC Dominion Securities Inc., BMO Capital Markets Corp. and TD Securities Inc. were the lead managers.
The interest rate on the debentures due Feb. 21, 2024 will reset on Feb. 21, 2019 at a rate of 80 bps over the three-month Canadian Dealer Offered Rate.
Manufacturers Life Insurance may redeem the notes at its option in whole or in part on or after Feb. 21, 2019 at par plus accrued and unpaid interest.
The subsidiary of Toronto-based financial services and reinsurance company Manulife Financial Corp. plans to use the proceeds for general corporate purposes, including future financing requirements.
| Issuer: | Manufacturers Life Insurance Co.
|
| Guarantor: | Manulife Financial Corp.
|
| Amount: | C$500 million
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| Maturity: | Feb. 21, 2024
|
| Securities: | Fixed-to-floating subordinated debentures
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| Bookrunners: | RBC Dominion Securities Inc., BMO Capital Markets Corp. and TD Securities Inc.
|
| Co-managers: | CIBC World Markets Inc.; Scotia Capital Inc.; BofA Merrill Lynch; National Bank Financial Inc.; HSBC Securities (Canada); Laurentian Bank Securities, Inc.; Canaccord Capital Corp., Desjardins Securities Inc. and Manulife Securities
|
| Coupon: | 2.811%; resets Feb. 21, 2019 at 80 bps over three-month CDOR
|
| Price: | Par
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| Yield: | 2.811%
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| Spread: | 114 bps versus interpolated Government of Canada bond curve
|
| Call feature: | On or after Feb. 21, 2019 at par plus accrued and unpaid interest
|
| Pricing date: | Feb. 18
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| Settlement date: | Feb. 21
|
| Ratings: | Standard & Poor's: A+
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| DBRS: A
|
| Distribution: | Canada
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| Price talk: | 117 bps, plus or minus 3 bps
|
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