Manulife Financial Corp 6-K, filed May 12, 2020
Manulife Financial Corp (MFC)
6-K
2020-05-12
For: 2020-05-12
View Original
Added on
April 02, 2026
About this 6-K
Manulife Financial Corp filed this 6-K on May 12, 2020.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of May, 2020
Commission File Number: 1-14942
MANULIFE FINANCIAL CORPORATION
(Translation of registrant's name into English)
(Translation of registrant's name into English)
200 Bloor Street East
North Tower 10
Toronto, Ontario, Canada M4W 1E5
(416) 926‑3000
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
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Form 20-F
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◻
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Form 40-F
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☑
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ◻
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ◻
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
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Yes
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◻
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No
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If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________.
DOCUMENTS FILED AS PART OF THIS FORM 6-K
The following documents, filed as exhibits to this Form 6-K, are incorporated by reference as part of this Form 6-K:
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Exhibit
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Description of Exhibit
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99.1
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Sixth Supplemental Indenture dated May 12, 2020 between Manulife Financial Corporation and BNY Trust Company of Canada
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| 99.2 |
Seventh Supplemental Indenture dated May 12, 2020 between Manulife Financial Corporation and BNY Trust Company of Canada |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
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MANULIFE FINANCIAL CORPORATION
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By: /s/ Kay Song
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Name: Kay Song
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Title: Assistant
Corporate Secretary
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Date: May 12, 2020
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EXHIBIT INDEX
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Exhibit
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Description of Exhibit
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99.1
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Sixth Supplemental Indenture dated May 12, 2020 between Manulife Financial Corporation and BNY Trust Company of Canada
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| 99.2 |
Seventh Supplemental Indenture dated May 12, 2020 between Manulife Financial Corporation and BNY Trust Company of Canada |
MADE AS OF MAY 12, 2020
MANULIFE FINANCIAL CORPORATION
and
BNY TRUST COMPANY OF CANADA
as TRUSTEE
SIXTH SUPPLEMENTAL INDENTURE
Supplemental to
THE TRUST INDENTURE
MADE AS OF MAY 25, 2016
and providing for the issue of
$1,000,000,000 PRINCIPAL AMOUNT OF 2.237% FIXED/FLOATING
SUBORDINATED DEBENTURES
due May 12, 2030
SUBORDINATED DEBENTURES
due May 12, 2030
THIS SIXTH SUPPLEMENTAL INDENTURE made as of May 12, 2020
BETWEEN:
MANULIFE FINANCIAL CORPORATION, a corporation existing under the
Insurance Companies Act (Canada)
and having its registered office in the City of Toronto in the Province of Ontario
(the “Corporation”),
- and -
BNY TRUST COMPANY OF CANADA, a trust company incorporated under
the federal
laws of Canada and having an office in the City of Toronto in the Province of Ontario
(the “Trustee”)
WHEREAS by a trust indenture made as of May 25, 2016 (the “Principal Indenture”) between the Corporation and the Trustee, provision was made for the issue in series of subordinated unsecured debentures; and
WHEREAS by a First Supplemental Indenture (the “First Supplemental Indenture”) made as of May 25, 2016 between the Corporation, the Trustee, The Bank of New York Mellon, London Branch as principal paying agent and calculation agent (the “Principal Paying Agent and Calculation Agent”) and the Bank of New York Mellon SA/NV, Luxembourg Branch as registrar and transfer agent (the “Registrar and Transfer Agent”),
provision was made for the issue of a series of debt securities in Singapore, such series being the 3.85% Subordinated Notes due May 25, 2026 in the aggregate principal amount of S$500,000,000, upon the terms set forth in the Principal Indenture as
supplemented by the First Supplemental Indenture; and
WHEREAS by a Second Supplemental Indenture (the “Second Supplemental Indenture”) made as of July 27, 2017 between the Corporation and the Trustee, amendment was made to the Principal Indenture to, among other things, amend the application of certain sections; and
WHEREAS by a Third Supplemental Indenture (the “Third Supplemental Indenture”) made as of August 15, 2017 between the Corporation and the Trustee, provision was made for the issue of a series of debt securities in Canada, such series being the 3.049%
Fixed/Floating Subordinated Debentures due August 20, 2029 in the aggregate principal amount of $750,000,000, upon the terms set forth in the Principal Indenture as supplemented by the Second Supplemental Indenture and the Third Supplemental
Indenture; and
WHEREAS by a Fourth Supplemental Indenture (the “Fourth Supplemental Indenture”) made as of November 21, 2017 between the Corporation, the Trustee, the Principal Paying Agent and Calculation Agent and the Registrar and Transfer Agent, provision was made for the
issue of a series of debt securities in Singapore, such series being the 3.00% Subordinated Notes due November 21, 2029 in the aggregate principal amount of S$500,000,000, upon the terms set forth in the Principal Indenture as supplemented by the
Second Supplemental Indenture and the Fourth Supplemental Indenture; and
WHEREAS by a Fifth Supplemental Indenture (the “Fifth Supplemental Indenture”) made as of May 9, 2018 between the Corporation and the Trustee, provision was made for the issue of a series of debt securities in Canada, such series being the 3.317% Fixed/Floating
Subordinated Debentures
due May 9, 2028 in the aggregate principal amount of $600,000,000, upon the terms set forth in the Principal Indenture as
supplemented by the Second Supplemental Indenture and the Fifth Supplemental Indenture; and
WHEREAS the Corporation is duly authorized to create and issue a
series of debt securities upon the terms set forth in the Principal Indenture. The terms, provisions and conditions of such series are provided for by the Second Supplemental Indenture and this Sixth Supplemental Indenture which supplement the
Principal Indenture, such series being the 2.237% Fixed/Floating Subordinated Debentures due May 12, 2030 in an aggregate principal amount of $1,000,000,000 (the “Debentures”). In connection therewith, the
Corporation has requested that the Trustee execute this Sixth Supplemental Indenture; and
WHEREAS all necessary corporate action has been taken by the
Corporation to make the Debentures, when certified by the Trustee and issued as provided in this Sixth Supplemental Indenture, valid, binding and legal obligations of the Corporation with the benefit and subject to the terms of the Principal
Indenture as supplemented by the Second Supplemental Indenture and this Sixth Supplemental Indenture; and
WHEREAS the foregoing recitals are made as representations and
statements of fact by the Corporation and not by the Trustee; and
WHEREAS the terms of this Sixth Supplemental Indenture are to
be executed and delivered by the parties hereto by way of supplement to the Principal Indenture in order to provide for the issue of the Debentures; and
WHEREAS the Trustee has full power and authority to execute this
Sixth Supplemental Indenture and to accept and execute the trusts herein imposed upon it;
NOW THEREFORE the parties agree as
follows:
ARTICLE 1
INTERPRETATION
INTERPRETATION
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1.1
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To be read with Principal Indenture.
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This Sixth Supplemental Indenture and the Second Supplemental Indenture are
integral to the Principal Indenture and shall hereafter be read together with the Principal Indenture and shall have effect as if all the provisions thereof and hereof were contained in one instrument.
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1.2
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Definitions.
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In this Sixth Supplemental Indenture, unless there is something in the subject
matter or context inconsistent therewith:
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(a)
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the expressions “Article” and “Section” followed by
a number mean and refer to the specified Article and Section of this Sixth Supplemental Indenture unless otherwise expressly stated. Other expressions defined in the Principal Indenture have the same meanings when used in this Sixth
Supplemental Indenture.
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(b)
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“3-month CDOR” means, for any quarterly floating rate interest period, the average bid rate
of interest (expressed as an annual percentage rate) rounded to the nearest one-hundred-thousandth of 1.00% (with .000005 per cent being rounded up) for Canadian
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dollar bankers’ acceptances with maturities of three months which appears on the Reuters Screen CDOR Page as of 10:15 a.m., Toronto
time, on the first Business Day of such quarterly interest period; provided that if such rate does not appear on the Reuters Screen CDOR Page on such day or if the Reuters Monitor Money Rates Service is not available or ceases to exist, the
3-month CDOR for such period will be determined using an Alternative CDOR Page as of an Alternative Time on such day. If no such Alternative CDOR Page is available on such day, the 3-month CDOR for such period shall be the average of the
bid rates of interest (expressed and rounded as set forth above) for Canadian dollar bankers’ acceptances with maturities of three months for same day settlement as quoted by such of the Schedule I banks (as defined in the Bank Act
(Canada)) as may quote such a rate as of 10:15 a.m., Toronto time, on the first Business Day of such quarterly interest period. Notwithstanding the foregoing, if the Corporation, a relevant regulatory supervisor or relevant administrator
determines that the 3-month CDOR has been permanently or indefinitely discontinued, the Corporation, in its sole discretion, may appoint a calculation agent (the “Calculation Agent”) to assist in
determining an appropriate alternative rate and adjustments thereto, and the decisions of such Calculation Agent shall be binding on the Corporation, the Trustee, and the holders of the Debentures. The Corporation or the Calculation Agent,
as applicable, shall use, as a substitute for the 3-month CDOR and for each future interest payment date, the alternative reference rate selected or recommended by the central bank, reserve bank, monetary authority, relevant regulatory
supervisor or any similar institution (including any committee or working group thereof), or identified through any other applicable regulatory or legislative action or guidance, that is consistent with accepted market practice for debt
obligations such as the Debentures (the “Alternative Rate”). As part of such substitution, the Corporation or the Calculation Agent after consultation with the Corporation, as applicable, shall make
such adjustments to the Alternative Rate and the spread thereon, as well as the business day convention, interest payment dates and related provisions and definitions, in each case that are consistent with accepted market practice or
applicable regulatory or legislative action or guidance for the use of such Alternative Rate for debt obligations such as the Debentures (collectively, “Adjustments”), provided, however, that (i) if
the Corporation determines that there is no clear accepted market practice or applicable regulatory or legislative action or guidance for such Adjustments, the Corporation shall appoint a Calculation Agent to make such Adjustments as it
determines appropriate for the Alternative Rate, and (ii) if the Corporation or the Calculation Agent after consultation with the Corporation, as applicable, determines that there is no clear market consensus as to whether any rate has
replaced the 3-month CDOR in customary market usage, the 3-month CDOR for such interest payment date shall be the 3-month CDOR for the immediately preceding interest payment date, and the process set forth in this paragraph to determine an
Alternative Rate shall be repeated for each subsequent interest payment date until such time as an Alternative Rate is determined.
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(c)
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“Alternative CDOR Page” shall mean the display designated as page “CDOR” on Bloomberg or an
equivalent service that displays average bid rates of interest for Canadian dollar bankers’ acceptances with maturities of three months.
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(d)
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“Alternative Time”, for any Alternative CDOR Page, shall mean the time of day at which such
Alternative CDOR Page becomes available.
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(e)
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“Business Day” means any day on which Canadian chartered banks are open for business in
Toronto and which is not a Saturday or Sunday.
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(f)
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“Debentures” means the debentures of the series referred to in Article 2 of this Sixth
Supplemental Indenture.
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(g)
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“Indenture” (when not qualified by the words “Principal”, “Original” or “Supplemental”), “hereto”, “hereby”, “hereunder”, “hereof”, “herein”
and similar expressions refer to the Principal Indenture as supplemented by the Second Supplemental Indenture and this Sixth Supplemental Indenture and not to any particular Article, Section, subdivision or portion hereof.
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(h)
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“LICAT” means the Life Insurance Capital Adequacy Test (or any successor or replacement
capital requirements applicable to the Corporation) for Canadian federally regulated life insurance companies.
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(i)
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“Program Amount” means the aggregate principal amount of debentures qualified for issuance
from time to time under the Prospectus then in effect. As of the date of this Sixth Supplemental Indenture the Program Amount is $10,000,000,000.
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(j)
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“Prospectus” means the short form base shelf prospectus of the Corporation with respect to
the continuous offering of debentures filed with the securities regulatory authority in each of the provinces and territories of Canada from time to time, including any amendments or supplements thereto (other than any Prospectus
Supplement).
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(k)
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“Prospectus Supplement” means a prospectus supplement for the Debentures.
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(l)
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“Reuters Screen CDOR Page” means the display designated as page “CDOR” on the Reuters
Monitor Money Rates Service (or such other page as may replace the CDOR page on that service) for purposes of displaying Canadian dollar bankers’ acceptance rates.
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(m)
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“S$” means the lawful money of Singapore.
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(n)
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“Superintendent” means the Superintendent of Financial Institutions appointed pursuant to
the Office of the Superintendent of Financial Institutions Act (Canada).
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(o)
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“U.S. Person” means a U.S. Person as defined in Regulation S under the U.S. Securities Act.
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(p)
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“U.S. Securities Act” means the United States Securities
Act of 1933, as amended.
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(q)
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“Written Order of the Corporation” has the meaning given in the Principal Indenture.
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ARTICLE 2
ISSUE OF SUBORDINATED DEBENTURES
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2.1
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Form, Terms and Certification and Delivery of the 2.237% Fixed/Floating Subordinated Debentures.
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(a)
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The fifth series of debentures authorized to be issued from time to time hereunder, as one series, are designated “2.237%
Fixed/Floating Subordinated Debentures” and are herein sometimes called the “Debentures”. The Debentures may be issued by the Corporation from time to time in an unlimited aggregate principal amount and may only be validly
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issued when the aggregate principal amount of the Debentures to be issued, when added to the aggregate principal amount of all
debentures previously or simultaneously issued under the Prospectus in effect on the date of issue, does not exceed the Program Amount. Upon any increase or decrease from time to time in the Program Amount, the Corporation shall forthwith
deliver to the Trustee a certified copy of the resolution of the Directors of the Corporation approving such change, together with a copy of any amendment of or supplement to the Prospectus relating to such increase or decrease. Debentures
shall be delivered to the Trustee on the respective terms set out in Article 4 and, subject to compliance with the provisions of Section 2.2.1 of the Principal Indenture, shall be certified by or on behalf of the Trustee by a certificate
substantially in the form specified on Schedule A and delivered by the Trustee upon receipt of the Written Order of the Corporation.
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ARTICLE 3
TERMS OF THE DEBENTURES
TERMS OF THE DEBENTURES
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3.1
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Designation and Issue.
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In accordance with the Principal Indenture the Corporation is authorized to issue
under this Sixth Supplemental Indenture the 2.237% Fixed/Floating Subordinated Debentures as a series of debt securities, which will have the respective terms set out in this Article 3 in addition to the terms set out in the Principal Indenture as
supplemented by the Second Supplemental Indenture.
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(a)
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Principal Amount. The initial principal amount of the Debentures which
may be issued under this Sixth Supplemental Indenture is $1,000,000,000. The Corporation may, at its option, reopen this series of debt securities in accordance with the provisions of Section 2.2.3 of the Principal Indenture.
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(b)
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Issue Date. The Debentures will
be dated May 12, 2020 (regardless of their actual date of issue) (the “Issue Date”).
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(c)
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Fixed Rate of Interest. The Debentures will bear interest from the
Issue Date to but excluding May 12, 2025 at a fixed annual rate of 2.237% payable in equal semi-annual installments on May 12 and November 12 of each year, with the first interest payment due on November 12, 2020 and the last interest
payment due on May 12, 2025.
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(d)
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Floating Rate of Interest. The Debentures will bear interest from and
including May 12, 2025 to but excluding May 12, 2030, at a floating rate of interest equal to the 3-month CDOR plus 1.49% payable quarterly in arrears on the 12th day of each of February, May, August and November in each year,
commencing August 12, 2025. The Corporation shall provide to the Trustee its interest calculation in respect of any floating rate interest period.
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(e)
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Calculation of Interest. Interest will be calculated on the basis of a
year of 365 days.
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(f)
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Stated Maturity Date. The
Debentures will mature on May 12, 2030.
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(g)
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Denominations. The Debentures
will be issued in minimum denominations of $1,000 and integral multiples thereof, subject as provided in accordance with clause (k) below.
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(h)
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Redemptions. The Corporation
may, at its option, redeem the Debentures, with the prior approval of the Superintendent, in accordance with the provisions of Article 3 of the
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6
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Principal Indenture and on not less than 10 days’ nor more than 60 days’ prior notice to the applicable Holder, in whole or in
part, on or after May 12, 2025 at a redemption price equal to par, together with accrued and unpaid interest to, but excluding, the date of redemption.
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(i)
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Defeasance. On or after May 12,
2025, the Corporation may, at its option, elect, with the prior approval of the Superintendent, to be released from the terms of the Indenture relating to the outstanding Debentures in accordance with the provisions of Article 8 of the
Principal Indenture.
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(j)
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Amendments Affecting Capital Treatment. Each of the Corporation and the
Trustee agrees, and each Holder of a Debenture, by such Holder’s acceptance thereof, likewise agrees, not to make any changes to this Indenture or the Debentures, without, but may from time to time with, the prior approval of the
Superintendent, which might affect the classification afforded the Debentures from time to time for capital adequacy purposes pursuant to the Insurance Companies Act (Canada) or the LICAT.
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(k)
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Currency. The Debentures will
be issued in Canadian Dollars.
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(l)
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Form. Each Debenture will be
issued substantially in the form of the registered Debenture as set out in Article 4.
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(m)
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Place of Payment. Payments of
principal and interest on each registered interest bearing Debenture shall be made in Canadian Dollars at the head office of the Trustee in Toronto, Ontario.
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(n)
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U.S. Legend. The Trustee
acknowledges that the Debentures have not been and will not be registered under the U.S. Securities Act, and may not be offered or sold within the United States, except that the Debentures may be offered or sold to Qualified Institutional
Buyers pursuant to Rule 144A under the U.S. Securities Act. Each Debenture issued to a U.S. Person pursuant to an exemption from the registration requirements of the U.S. Securities Act, and all Debentures issued in exchange or transfer
therefor, shall bear the legend set forth on Schedule B in boldface print on the face of such certificate.
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(o)
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Upon receipt by the Trustee of the documents and instruments required pursuant to Section 2.5.1 of the Indenture and this Sixth
Supplemental Indenture, the Trustee shall certify the Debentures and cause the Debentures to be delivered in accordance with the Written Order of the Corporation.
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3.2
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Execution and Delivery of Book-Entry Securities.
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The Corporation may establish that any Debentures are to be issued under the Book-Entry System in accordance with Section
2.15 of the Principal Indenture, which Book-Entry Debentures shall be evidenced in the form of a single Definitive Security in the form set out in Article 4 that may, notwithstanding Section 2.4 of the Principal Indenture, be executed by the
Corporation using manual, facsimile or electronic signatures and shall bear a legend substantially to the following effect:
“Unless this certificate is presented by an authorized representative of CDS Clearing and Depository
Services Inc. (“CDS”) to Manulife Financial Corporation (the “Issuer”) or its agent for registration of transfer, exchange or payment, and any certificate issued in respect thereof is registered in the name of CDS & CO., or in such other name as
is requested
by an authorized representative of CDS (and any payment is made to CDS & CO. or to such other entity
as is requested by an authorized representative of CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered holder hereof, CDS & CO., has a property interest in the securities
represented by this certificate herein and it is a violation of its rights for another person to hold, transfer or deal with this certificate.”
ARTICLE 4
FORM OF 2.237% FIXED/FLOATING SUBORDINATED DEBENTURES
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4.1
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2.237% Fixed/Floating Subordinated Debentures.
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The English language version of the Definitive Securities representing the
Debentures, the certificate of the Trustee and the registration panel for a Debenture shall be substantially in the respective forms set forth in Schedule A modified as may be necessary to reflect the specific terms and conditions of the Debentures
determined in accordance with Article 3.
ARTICLE 5
SUNDRY PROVISIONS
SUNDRY PROVISIONS
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5.1
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Acceptance of Trust.
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The Trustee hereby accepts the trusts in this Sixth Supplemental Indenture declared
and provided for and agrees to perform the same upon the terms and conditions and subject to the provisions set forth in the Indenture. This agreement and all documents relating to the transactions covered hereby have been drawn up in English at the
express wish of the parties. Ce contrat et tous les documents pertinents á cette transaction ont été rédigés en anglais á la volonté expresse des parties.
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5.2
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Counterparts and Formal Date.
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This Sixth Supplemental Indenture may be executed in several counterparts and
delivered by facsimile or other electronic transmission of a counterpart hereof bearing a manual, facsimilie or other electronic signature, each of which so executed shall be deemed to be an original, and such counterparts together shall be deemed to
bear the same date as the Issue Date.
- signature page follows -
IN WITNESS WHEREOF the parties hereto have executed this Sixth Supplemental
Indenture as of the Issue Date specified above.
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MANULIFE FINANCIAL CORPORATION
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By:
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“Philip J. Witherington”
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Name: Philip J. Witherington
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Title: Chief
Financial Officer
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By:
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“Halina K. von dem Hagen”
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Name: Halina K. von dem Hagen
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Title: Global
Treasurer and Head of Capital Management
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(corporate seal)
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BNY TRUST COMPANY OF CANADA, as Trustee
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By:
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“Denice Elleston”
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Name: Denice Elleston
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Title: Authorized
Signatory
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SCHEDULE A
Certificate No. 1
Unless this certificate is presented by an authorized representative of CDS Clearing and Depository Services Inc. (“CDS”)
to Manulife Financial Corporation (the “Issuer”) or its agent for registration of transfer, exchange or payment, and any certificate issued in respect thereof is registered in the name of CDS & CO., or in such other name as is requested by an
authorized representative of CDS (and any payment is made to CDS & CO. or to such other entity as is requested by an authorized representative of CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL since the registered holder hereof, CDS & CO., has a property interest in the securities represented by this certificate herein and it is a violation of its rights for another person to hold, transfer or deal with this certificate.
THIS DEBENTURE CONSTITUTES SUBORDINATED INDEBTEDNESS OF THE CORPORATION
MANULIFE FINANCIAL CORPORATION
(Existing under the Insurance Companies Act (Canada)),
2.237% FIXED/FLOATING SUBORDINATED DEBENTURES
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CUSIP No.:
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56501RAH9
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Interest Calculation:
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Actual / 365
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Issue Date:
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May 12, 2020
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Registered Holder:
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CDS & Co.
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Maturity Date:
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May 12, 2030
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Principal Amount:
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$
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1,000,000,000
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Interest Rate:
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2.237% (0 – 5 years); 3-month CDOR + 1.49% (5 years - maturity)
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Interest Payment Dates:
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May 12 and November 12 (0 – 5 years, commencing on November 12, 2020);
February 12, May 12, August 12 and November 12 in each year,
commencing on August 12, 2025 (5 years - maturity) |
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MANULIFE FINANCIAL CORPORATION (the “Corporation”) for value received hereby
acknowledges itself indebted and promises to pay to the Holder hereof on the maturity date or on such earlier or later date as the principal amount hereof may become due in accordance with the provisions of the Indenture hereinafter mentioned, the
above principal sum in lawful money of Canada on presentation and surrender of this Debenture at the head office of the Trustee (as defined below), if this instrument is issued in the book-entry system, or at any branch in Canada of the Royal Bank of
Canada, as selected by the Holder, if this instrument is issued in definitive form, as selected by the Holder, and to pay interest on the principal amount hereof from the date hereof, or from the last Interest Payment Date to which interest has been
paid or made available for payment, whichever is later, at the interest rate per annum set forth above calculated as set forth above, in like money; and should the Corporation at any time make default in the payment of any principal or interest, to
pay interest on the amount in default at the same rate, calculated as set forth above, in like money, at one of the said places, as selected by the Holder, and on the same dates. Whenever interest is computed on a basis of a year (the “deemed year”)
which contains fewer days than the actual number of days in the calendar year of calculation, such rate of interest shall be expressed as a yearly rate for purposes of the Interest Act (Canada) by multiplying
such rate of such interest by the actual number of days in the calendar year of calculation and dividing it by the number of days in the deemed year.
This Debenture is one of the debentures of the Corporation, issued or issuable in one series under the provisions of the
Trust Indenture made as of May 25, 2016 (the “Principal Indenture”) as supplemented by the Second Supplemental Indenture made as of July 27, 2017 and the Sixth Supplemental Indenture made as of May 12, 2020 (collectively, the “Indenture”) between the
Corporation and BNY Trust Company of
Canada (the “Trustee”). Reference is hereby expressly made to the Indenture for particulars of the rights of the Holders of
the Debentures and of the Corporation and of the Trustee in respect thereof and the terms and conditions upon which the Debentures are issued or may be issued and held, all to the same effect as if the provisions of the Indenture were herein set
forth, to all of which provisions the Holder of this Debenture by acceptance hereof assents. Capitalized terms used but not defined herein have the meanings attributed to them in the Indenture. The 2.237% Fixed/Floating Subordinated Debentures due
May 12, 2030 (the “Debentures”), of which this is one, are issuable by the Corporation from time to time in an unlimited aggregate principal amount, subject to the terms and conditions of the Indenture. The aggregate principal amount of debentures of
other series which may be issued under the Indenture is unlimited, but such debentures may be issued only upon the terms and subject to the conditions provided in the Indenture.
The indebtedness evidenced by this Debenture and all other debentures now or hereafter certified and delivered under the
Indenture is subordinated and subject in right of payment, to the extent and in the manner provided in the Indenture, to the prior payment of all Senior Indebtedness (as defined in the Indenture) and all Policy Liabilities (as defined in the
Indenture) of the Corporation, whether outstanding at the date of the Indenture or thereafter created, incurred, assumed or guaranteed.
The Debentures are direct obligations of the Corporation but are not secured by any mortgage, pledge, hypothec or other
charge.
As interest on this Debenture becomes due, the Corporation (except in the case of payment at maturity or on acceleration or
redemption, at which time payment of interest may be made upon surrender of this Debenture) shall, at least three business days prior to each date on which interest becomes due, forward or cause to be forwarded by (i) electronic transfer of
immediately available funds to the account designated by the applicable Holder, or (ii) first class mail, postage prepaid, to the Holder hereof, or in the case of joint Holders, to the joint Holder whose name first appears on the register, subject to
the provisions of the Indenture and in the manner provided therein, a cheque for such interest, in each case less any tax required by law to be deducted. Subject to the provisions of the Indenture, the transfer of such funds or the mailing of such
cheque shall satisfy and discharge all liability for interest on this Debenture to the extent of the sum represented by such cheque (plus the amount of any tax withheld).
Upon compliance with the provisions of the Indenture, Debentures of any denomination may be exchanged for an equal
aggregate principal amount of Debentures in any other authorized denomination or denominations.
The right is reserved to the Corporation to purchase or redeem Debentures for cancellation in accordance with the
provisions of the Indenture.
The principal hereof may become or be declared due and payable before the stated maturity date in the events, in the
manner, with the effect and at the times provided in the Indenture.
The Indenture contains provisions making binding upon all Holders of Debentures outstanding thereunder resolutions passed
at meetings of such Holders held in accordance with such provisions and instruments signed by the Holders of a specified majority of such Debentures outstanding.
This Debenture has not been and will not be registered under the United States Securities Act of 1933, as amended (the
“U.S. Securities Act”) or any state securities laws and may not be offered, sold or delivered, directly or indirectly, in the United States of America, its territories, its possessions and other areas subject to its jurisdiction or to, or for the
account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.
This Debenture may only be transferred, upon compliance with the conditions prescribed in the Indenture, in one of the
registers to be kept at the principal office of the Trustee in the City of Toronto by the Holder hereof or such Holder’s executors or administrator or other legal representatives, or such Holder’s attorney duly appointed by an instrument in form and
substance satisfactory to the Trustee or other registrar, and upon compliance with such reasonable requirements as the Trustee and/or other registrar may prescribe.
The Indenture and the Debentures shall be governed by, and construed in accordance with, the laws of the Province of
Ontario and the laws of Canada applicable therein.
This Debenture shall not become obligatory for any purpose until it has been certified by the Trustee under the Indenture.
- signature page follows -
IN WITNESS WHEREOF this Debenture has been duly executed as of the Issue
Date specified above.
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MANULIFE FINANCIAL CORPORATION
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By:
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Name: Philip J. Witherington
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Title: Chief
Financial Officer
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c/s
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By:
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Name: Halina K. von dem Hagen
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Title: Global
Treasurer and Head of Capital Management
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(FORM OF TRUSTEE’S CERTIFICATE)
TRUSTEE’S CERTIFICATE
This Definitive Security represents one of the Debentures of a series of 2.237% Fixed/Floating Subordinated Debentures referred to in the
Indenture within mentioned.
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BNY TRUST COMPANY OF CANADA,
Trustee
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By:
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Name: Denice Elleston
Title: Authorized Signatory |
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(FORM OF REGISTRATION PANEL)
REGISTRATION PANEL
(No writing hereon except by the Trustee or other registrar)
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Date of Registration
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In Whose Name Registered
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Signature of Trustee or Registrar
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(FORM OF CERTIFICATE OF TRANSFER)
CERTIFICATE OF TRANSFER
To assign this Debenture, fill in the form below:
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I or we assign and transfer this Debenture to
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(Print or type assignee’s name, address and postal code)
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(Insert assignee’s social insurance or security or tax identifying number)
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and irrevocably appoint ___________________ agent to transfer this Debenture on the books of the
Corporation. The agent may substitute another to act for him.
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Date:
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Your Signature:
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Sign exactly as your name appears on the other side of this Debenture.
* Signature Guarantee
* This signature must be guaranteed by a Canadian chartered bank, trust company or a member of the
Investment Industry Regulatory Organization of Canada.
SCHEDULE B
FORM OF U.S. LEGEND
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF MANULIFE FINANCIAL CORPORATION (THE “CORPORATION”) THAT SUCH SECURITIES MAY BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS OR (C) INSIDE
THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE SECUR1TIES ACT OR (2) RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE, AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS. IN THE CASE OF (C) ABOVE, THE HOLDER MUST
FURNISH TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE CORPORATION TO THE EFFECT THAT THE PROPOSED TRANSFER MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OR
APPLICABLE STATE SECURITIES LAWS. IF THE CORPORATION IS A “FOREIGN ISSUER” WITHIN THE MEANING OF REGULATION S AT THE TIME OF TRANSFER, A NEW CERTIFICATE, BEARING NO LEGEND, DELIVERY OF WHICH WILL CONSTITUTE “GOOD DELIVERY”, MAY BE OBTAINED FROM THE
TRUST COMPANY (THE “TRUSTEE”) UPON DELIVERY OF THIS CERTIFICATE AND A DULY EXECUTED DECLARATION IN A FORM SATISFACTORY TO THE TRUSTEE AND THE CORPORATION, TO THE EFFECT THAT THE SALE OF THE SECURITIES REPRESENTED HEREBY IS BEING MADE IN COMPLIANCE
WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT;
provided, that if the Debentures are being sold under Clause (B), the legend may be removed by
providing a declaration to the Trustee, to the following effect (or in such form as the Corporation or the Trustee may from time to time prescribe):
The undersigned (A) acknowledges that the sale of ________ Debentures, represented by
certificate numbers __________, to which this declaration relates is being made in reliance upon Rule 904 of Regulation S under the United States Securities Act of 1933 (the “Securities Act”) and (B) certifies that (1) it is not an
“affiliate” of Manulife Financial Corporation (as defined in Rule 405 under the Securities Act), (2) the offer of such securities was not made to a person in the United States and at the time the buy order was originated, the buyer was outside the
United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the United States and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer
in the United States, (3) neither the seller nor any person acting on its behalf engaged or will engage in any directed selling efforts in connection with the offer and sale of such securities, and (4) the contemplated sale is not a transaction, or
part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the Securities Act. Terms used herein have the meaning given to them by Regulation S.
and, provided further, that if any such securities are being sold under paragraph (C)(2) above
the legend may be removed by delivery to the Trustee of an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, that such legend is no longer required under applicable requirements of the Securities Act or state
securities laws.
Prior to the issuance of the Debentures, the Corporation shall notify the Trustee, in writing,
concerning which certificates are to bear the legend described above. The Trustee will thereafter maintain a list of all registered holders from time to time of legended Debentures.
MADE AS OF MAY 12, 2020
MANULIFE FINANCIAL CORPORATION
and
BNY TRUST COMPANY OF CANADA
as TRUSTEE
SEVENTH SUPPLEMENTAL INDENTURE
Supplemental to
THE TRUST INDENTURE
MADE AS OF MAY 25, 2016
and providing for the issue of
$1,000,000,000 PRINCIPAL AMOUNT OF 2.818%
FIXED/FLOATING
SUBORDINATED DEBENTURES
due May 13, 2035
SUBORDINATED DEBENTURES
due May 13, 2035
THIS SEVENTH SUPPLEMENTAL INDENTURE made as of May 12, 2020
BETWEEN:
MANULIFE FINANCIAL CORPORATION, a corporation existing under
the
Insurance Companies Act (Canada)
and having its registered office in the City of Toronto in the Province of Ontario
(the “Corporation”),
- and -
BNY TRUST COMPANY OF CANADA, a trust company incorporated
under the federal
laws of Canada and having an office in the City of Toronto in the Province of Ontario
(the “Trustee”)
WHEREAS by a trust indenture made as of May 25, 2016 (the “Principal Indenture”) between the Corporation and the Trustee, provision was made for the issue in series of subordinated unsecured debentures; and
WHEREAS by a First Supplemental Indenture (the “First Supplemental Indenture”) made as of May 25, 2016 between the Corporation, the Trustee, The Bank of New York Mellon, London Branch as principal paying agent and calculation agent (the “Principal Paying Agent and Calculation Agent”) and the Bank of New York Mellon SA/NV, Luxembourg Branch as registrar and transfer agent (the “Registrar and Transfer Agent”),
provision was made for the issue of a series of debt securities in Singapore, such series being the 3.85% Subordinated Notes due May 25, 2026 in the aggregate principal amount of S$500,000,000, upon the terms set forth in the Principal Indenture as
supplemented by the First Supplemental Indenture; and
WHEREAS by a Second Supplemental Indenture (the “Second Supplemental Indenture”) made as of July 27, 2017 between the Corporation and the Trustee, amendment was made to the Principal Indenture to, among other things, amend the application of certain sections; and
WHEREAS by a Third Supplemental Indenture (the “Third Supplemental Indenture”) made as of August 15, 2017 between the Corporation and the Trustee, provision was made for the issue of a series of debt securities in Canada, such series being the 3.049%
Fixed/Floating Subordinated Debentures due August 20, 2029 in the aggregate principal amount of $750,000,000, upon the terms set forth in the Principal Indenture as supplemented by the Second Supplemental Indenture and the Third Supplemental
Indenture; and
WHEREAS by a Fourth Supplemental Indenture (the “Fourth Supplemental Indenture”) made as of November 21, 2017 between the Corporation, the Trustee, the Principal Paying Agent and Calculation Agent and the Registrar and Transfer Agent, provision was made for the
issue of a series of debt securities in Singapore, such series being the 3.00% Subordinated Notes due November 21, 2029 in the aggregate principal amount of S$500,000,000, upon the terms set forth in the Principal Indenture as supplemented by the
Second Supplemental Indenture and the Fourth Supplemental Indenture; and
WHEREAS by a Fifth Supplemental Indenture (the “Fifth Supplemental Indenture”) made as of May 9, 2018 between the Corporation and the Trustee, provision was made for the issue of a series of debt securities in Canada, such series being the 3.317% Fixed/Floating
Subordinated Debentures
due May 9, 2028 in the aggregate principal amount of $600,000,000, upon the terms set forth in the Principal Indenture
as supplemented by the Second Supplemental Indenture and the Fifth Supplemental Indenture; and
WHEREAS by a Sixth Supplemental Indenture (the “Sixth Supplemental Indenture”) made as of the date hereof between the Corporation and the Trustee, provision was made for the issue of a series of debt securities in Canada, such series being the 2.237%
Fixed/Floating Subordinated Debentures due May 12, 2030 in the aggregate principal amount of $1,000,000,000, upon the terms set forth in the Principal Indenture as supplemented by the Second Supplemental Indenture and the Sixth Supplemental
Indenture; and
WHEREAS the Corporation is duly authorized to create and
issue a series of debt securities upon the terms set forth in the Principal Indenture. The terms, provisions and conditions of such series are provided for by the Second Supplemental Indenture and this Seventh Supplemental Indenture which supplement
the Principal Indenture, such series being the 2.818% Fixed/Floating Subordinated Debentures due May 13, 2035 in an aggregate principal amount of $1,000,000,000 (the “Debentures”). In connection therewith, the
Corporation has requested that the Trustee execute this Seventh Supplemental Indenture; and
WHEREAS all necessary corporate action has been taken by the
Corporation to make the Debentures, when certified by the Trustee and issued as provided in this Seventh Supplemental Indenture, valid, binding and legal obligations of the Corporation with the benefit and subject to the terms of the Principal
Indenture as supplemented by the Second Supplemental Indenture and this Seventh Supplemental Indenture; and
WHEREAS the foregoing recitals are made as representations
and statements of fact by the Corporation and not by the Trustee; and
WHEREAS the terms of this Seventh Supplemental Indenture are
to be executed and delivered by the parties hereto by way of supplement to the Principal Indenture in order to provide for the issue of the Debentures; and
WHEREAS the Trustee has full power and authority to execute
this Seventh Supplemental Indenture and to accept and execute the trusts herein imposed upon it;
NOW THEREFORE the parties agree as follows:
ARTICLE 1
INTERPRETATION
INTERPRETATION
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1.1
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To be read with Principal Indenture.
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This Seventh Supplemental Indenture and the Second Supplemental Indenture are integral to the
Principal Indenture and shall hereafter be read together with the Principal Indenture and shall have effect as if all the provisions thereof and hereof were contained in one instrument.
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1.2
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Definitions.
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In this Seventh Supplemental Indenture, unless there is something in the subject matter or context
inconsistent therewith:
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(a)
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the expressions “Article” and “Section”
followed by a number mean and refer to the specified Article and Section of this Seventh Supplemental Indenture unless otherwise expressly stated. Other expressions defined in the Principal Indenture have the same meanings when used in this
Seventh Supplemental Indenture.
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(b)
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“3-month CDOR” means, for any quarterly floating rate interest period,
the average bid rate of interest (expressed as an annual percentage rate) rounded to the nearest one-hundred-thousandth of 1.00% (with .000005 per cent being rounded up) for Canadian dollar bankers’ acceptances with maturities of three
months which appears on the Reuters Screen CDOR Page as of 10:15 a.m., Toronto time, on the first Business Day of such quarterly interest period; provided that if such rate does not appear on the Reuters Screen CDOR Page on such day or if
the Reuters Monitor Money Rates Service is not available or ceases to exist, the 3-month CDOR for such period will be determined using an Alternative CDOR Page as of an Alternative Time on such day. If no such Alternative CDOR Page is
available on such day, the 3-month CDOR for such period shall be the average of the bid rates of interest (expressed and rounded as set forth above) for Canadian dollar bankers’ acceptances with maturities of three months for same day
settlement as quoted by such of the Schedule I banks (as defined in the Bank Act (Canada)) as may quote such a rate as of 10:15 a.m., Toronto time, on the first Business Day of such quarterly interest period. Notwithstanding the foregoing,
if the Corporation, a relevant regulatory supervisor or relevant administrator determines that the 3-month CDOR has been permanently or indefinitely discontinued, the Corporation, in its sole discretion, may appoint a calculation agent (the
“Calculation Agent”) to assist in determining an appropriate alternative rate and adjustments thereto, and the decisions of such Calculation Agent shall be binding on the Corporation, the Trustee, and
the holders of the Debentures. The Corporation or the Calculation Agent, as applicable, shall use, as a substitute for the 3-month CDOR and for each future interest payment date, the alternative reference rate selected or recommended by the
central bank, reserve bank, monetary authority, relevant regulatory supervisor or any similar institution (including any committee or working group thereof), or identified through any other applicable regulatory or legislative action or
guidance, that is consistent with accepted market practice for debt obligations such as the Debentures (the “Alternative Rate”). As part of such substitution, the Corporation or the Calculation Agent
after consultation with the Corporation, as applicable, shall make such adjustments to the Alternative Rate and the spread thereon, as well as the business day convention, interest payment dates and related provisions and definitions, in
each case that are consistent with accepted market practice or applicable regulatory or legislative action or guidance for the use of such Alternative Rate for debt obligations such as the Debentures (collectively, “Adjustments”), provided, however, that (i) if the Corporation determines that there is no clear accepted market practice or applicable regulatory or legislative action or guidance for such Adjustments,
the Corporation shall appoint a Calculation Agent to make such Adjustments as it determines appropriate for the Alternative Rate, and (ii) if the Corporation or the Calculation Agent after consultation with the Corporation, as applicable,
determines that there is no clear market consensus as to whether any rate has replaced the 3-month CDOR in customary market usage, the 3-month CDOR for such interest payment date shall be the 3-month CDOR for the immediately preceding
interest payment date, and the process set forth in this paragraph to determine an Alternative Rate shall be repeated for each subsequent interest payment date until such time as an Alternative Rate is determined.
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(c)
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“Alternative CDOR Page” shall mean the display designated as page
“CDOR” on Bloomberg or an equivalent service that displays average bid rates of interest for Canadian dollar bankers’ acceptances with maturities of three months.
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(d)
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“Alternative Time”, for any Alternative CDOR Page, shall mean the time
of day at which such Alternative CDOR Page becomes available.
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(e)
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“Business Day” means any day on which Canadian chartered banks are
open for business in Toronto and which is not a Saturday or Sunday.
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(f)
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“Canada Yield Price” means a price per $1,000 principal amount of
Debentures, calculated by the Corporation at approximately 10:00 am (Toronto time) on the third Business Day preceding the date fixed for redemption of Debentures, which would provide a yield thereon from the date fixed for redemption to,
but excluding, May 13, 2030 equal to the Government of Canada Yield, compounded semi-annually in arrears, plus 56.5 basis points.
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(g)
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“Debentures” means the debentures of the series referred to in
Article 2 of this Seventh Supplemental Indenture.
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(h)
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“Government of Canada Yield” means, on any date that is three (3)
Business Days prior to a date fixed for redemption, the bid yield to maturity on such date, compounded semi-annually, which a non-callable Government of Canada nominal bond would be expected to carry if issued, in Canadian dollars in
Canada, at 100% of its principal amount on such date with a term to maturity equal to the period between the date fixed for redemption and May 13, 2030 (the “Applicable Term”), as determined by two
independent Canadian investment dealers (each of which is a member of the Investment Industry Regulatory Organization of Canada) selected by the Corporation, and based on a linear interpolation of the yields represented by the
arithmetic average of bids observed in the market at or about 10:00 am (Toronto time) on the relevant date for each of the two outstanding non-callable Government of Canada nominal bonds which have the terms to maturity which most closely
span the Applicable Term on such date, where such arithmetic average is based in each case on the bids quoted to such independent investment dealers.
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(i)
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“Indenture” (when not qualified by the words “Principal”, “Original”
or “Supplemental”), “hereto”, “hereby”, “hereunder”, “hereof”, “herein” and similar expressions refer to the Principal Indenture as supplemented by the Second Supplemental Indenture and this Seventh Supplemental Indenture and not to any particular Article, Section,
subdivision or portion hereof.
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(j)
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“LICAT” means the Life Insurance Capital Adequacy Test (or any
successor or replacement capital requirements applicable to the Corporation) for Canadian federally regulated life insurance companies.
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(k)
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“Program Amount” means the aggregate principal amount of debentures
qualified for issuance from time to time under the Prospectus then in effect. As of the date of this Seventh Supplemental Indenture the Program Amount is $10,000,000,000.
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(l)
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“Prospectus” means the short form base shelf prospectus of the
Corporation with respect to the continuous offering of debentures filed with the securities regulatory authority in
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each of the provinces and territories of Canada from time to time, including any amendments or supplements
thereto (other than any Prospectus Supplement).
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(m)
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“Prospectus Supplement” means a prospectus supplement for the
Debentures.
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(n)
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“Reuters Screen CDOR Page” means the display designated as page “CDOR”
on the Reuters Monitor Money Rates Service (or such other page as may replace the CDOR page on that service) for purposes of displaying Canadian dollar bankers’ acceptance rates.
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(o)
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“S$” means the lawful money of Singapore.
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(p)
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“Superintendent” means the Superintendent of Financial Institutions
appointed pursuant to the Office of the Superintendent of Financial Institutions Act (Canada).
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(q)
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“U.S. Person” means a U.S. Person as defined in Regulation S under the
U.S. Securities Act.
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(r)
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“U.S. Securities Act” means the United States Securities Act of 1933, as amended.
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(s)
|
“Written Order of the Corporation” has the meaning given in the
Principal Indenture.
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ARTICLE 2
ISSUE OF SUBORDINATED DEBENTURES
ISSUE OF SUBORDINATED DEBENTURES
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2.1
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Form, Terms and Certification and Delivery of the 2.818% Fixed/Floating Subordinated
Debentures.
|
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(a)
|
The sixth series of debentures authorized to be issued from time to time hereunder, as one series, are
designated “2.818% Fixed/Floating Subordinated Debentures” and are herein sometimes called the “Debentures”. The Debentures may be issued by the Corporation from time to time in an unlimited aggregate principal amount and may only be
validly issued when the aggregate principal amount of the Debentures to be issued, when added to the aggregate principal amount of all debentures previously or simultaneously issued under the Prospectus in effect on the date of issue, does
not exceed the Program Amount. Upon any increase or decrease from time to time in the Program Amount, the Corporation shall forthwith deliver to the Trustee a certified copy of the resolution of the Directors of the Corporation approving
such change, together with a copy of any amendment of or supplement to the Prospectus relating to such increase or decrease. Debentures shall be delivered to the Trustee on the respective terms set out in Article 4 and, subject to
compliance with the provisions of Section 2.2.1 of the Principal Indenture, shall be certified by or on behalf of the Trustee by a certificate substantially in the form specified on Schedule A and delivered by the Trustee upon receipt of
the Written Order of the Corporation.
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ARTICLE 3
TERMS OF THE DEBENTURES
TERMS OF THE DEBENTURES
|
3.1
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Designation and Issue.
|
In accordance with the Principal Indenture the Corporation is authorized to issue under this Seventh
Supplemental Indenture the 2.818% Fixed/Floating Subordinated Debentures as a series of debt
securities, which will have the respective terms set out in this Article 3 in addition to the terms set out in the
Principal Indenture as supplemented by the Second Supplemental Indenture.
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(a)
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Principal Amount. The initial principal amount of
the Debentures which may be issued under this Seventh Supplemental Indenture is $1,000,000,000. The Corporation may, at its option, reopen this series of debt securities in accordance with the provisions of Section 2.2.3 of the Principal
Indenture.
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(b)
|
Issue Date.
The Debentures will be dated May 12, 2020 (regardless of their actual date of issue) (the “Issue Date”).
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(c)
|
Fixed Rate of Interest. The Debentures will bear
interest from the Issue Date to but excluding May 13, 2030 at a fixed annual rate of 2.818% payable in equal semi-annual installments on May 13 and November 13 of each year, other than in November, 2020, with the first interest payment due
on November 13, 2020 and the last interest payment due on May 13, 2030. The amount payable from and including the Issue Date to but excluding November 13, 2020 will be $14.16720548 per $1,000 principal amount of Debentures.
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(d)
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Floating Rate of Interest. The Debentures will
bear interest from and including May 13, 2030 to but excluding May 13, 2035, at a floating rate of interest equal to the 3-month CDOR plus 1.82% payable quarterly in arrears on the 13th day of each of February, May, August and
November in each year, commencing August 13, 2030. The Corporation shall provide to the Trustee its interest calculation in respect of any floating rate interest period.
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(e)
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Calculation of Interest. Interest will be
calculated on the basis of a year of 365 days.
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(f)
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Stated Maturity Date. The Debentures will mature on May 13, 2035.
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(g)
|
Denominations.
The Debentures will be issued in minimum denominations of $1,000 and integral multiples thereof, subject as provided in accordance with clause (k) below.
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(h)
|
Redemptions.
The Corporation may, at its option, redeem the Debentures, with the prior approval of the Superintendent, in accordance with the provisions of Article 3 of the Principal Indenture and on not less than 10 days’ nor more than 60 days’ prior
notice to the applicable Holder, in whole or in part, on or after May 13, 2025 to, but excluding, May 13, 2030 at a redemption price equal to the greater of (i) the Canada Yield Price and (ii) par, and on or after May 13, 2030 at a
redemption price equal to par, together, in each case, with accrued and unpaid interest to, but excluding, the date of redemption.
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(i)
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Defeasance. On or after May 13, 2030, the Corporation may, at its option, elect, with the prior approval of the Superintendent, to be released from the terms of the Indenture relating to the outstanding Debentures in accordance with the provisions
of Article 8 of the Principal Indenture.
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(j)
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Amendments Affecting Capital Treatment. Each of
the Corporation and the Trustee agrees, and each Holder of a Debenture, by such Holder’s acceptance thereof, likewise agrees, not to make any changes to this Indenture or the Debentures, without, but may from time to time with, the prior
approval of the Superintendent, which might affect the classification afforded the Debentures from time to time for capital adequacy purposes pursuant to the Insurance Companies Act (Canada) or the
LICAT.
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(k)
|
Currency.
The Debentures will be issued in Canadian Dollars.
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|
(l)
|
Form. Each
Debenture will be issued substantially in the form of the registered Debenture as set out in Article 4.
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(m)
|
Place of Payment.
Payments of principal and interest on each registered interest bearing Debenture shall be made in Canadian Dollars at the head office of the Trustee in Toronto, Ontario.
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(n)
|
U.S. Legend.
The Trustee acknowledges that the Debentures have not been and will not be registered under the U.S. Securities Act, and may not be offered or sold within the United States, except that the Debentures may be offered or sold to Qualified
Institutional Buyers pursuant to Rule 144A under the U.S. Securities Act. Each Debenture issued to a U.S. Person pursuant to an exemption from the registration requirements of the U.S. Securities Act, and all Debentures issued in exchange
or transfer therefor, shall bear the legend set forth on Schedule B in boldface print on the face of such certificate.
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(o)
|
Upon receipt by the Trustee of the documents and instruments required pursuant to Section 2.5.1 of the
Indenture and this Seventh Supplemental Indenture, the Trustee shall certify the Debentures and cause the Debentures to be delivered in accordance with the Written Order of the Corporation.
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|
3.2
|
Execution and Delivery of Book-Entry Securities.
|
The Corporation may establish that any Debentures are to be issued under the Book-Entry System in accordance with
Section 2.15 of the Principal Indenture, which Book-Entry Debentures shall be evidenced in the form of a single Definitive Security in the form set out in Article 4 that may, notwithstanding Section 2.4 of the Principal Indenture, be executed by the
Corporation using manual, facsimile or electronic signatures and shall bear a legend substantially to the following effect:
“Unless this certificate is presented by an authorized representative of CDS
Clearing and Depository Services Inc. (“CDS”) to Manulife Financial Corporation (the “Issuer”) or its agent for registration of transfer, exchange or payment, and any certificate issued in respect thereof is registered in the name of CDS & CO.,
or in such other name as is requested by an authorized representative of CDS (and any payment is made to CDS & CO. or to such other entity as is requested by an authorized representative of CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered holder hereof, CDS & CO., has a property interest in the securities represented by this certificate herein and it is a violation of its rights for another person to hold, transfer
or deal with this certificate.”
ARTICLE 4
FORM OF 2.818% FIXED/FLOATING SUBORDINATED DEBENTURES
FORM OF 2.818% FIXED/FLOATING SUBORDINATED DEBENTURES
|
4.1
|
2.818% Fixed/Floating Subordinated Debentures.
|
The English language version of the Definitive Securities representing the Debentures, the
certificate of the Trustee and the registration panel for a Debenture shall be substantially in the respective
forms set forth in Schedule A modified as may be necessary to reflect the specific terms and conditions of the
Debentures determined in accordance with Article 3.
ARTICLE 5
SUNDRY PROVISIONS
SUNDRY PROVISIONS
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5.1
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Acceptance of Trust.
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The Trustee hereby accepts the trusts in this Seventh Supplemental Indenture declared and provided
for and agrees to perform the same upon the terms and conditions and subject to the provisions set forth in the Indenture. This agreement and all documents relating to the transactions covered hereby have been drawn up in English at the express wish
of the parties. Ce contrat et tous les documents pertinents á cette transaction ont été rédigés en anglais á la volonté expresse des parties.
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5.2
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Counterparts and Formal Date.
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This Seventh Supplemental Indenture may be executed in several counterparts and delivered by
facsimile or other electronic transmission of a counterpart hereof bearing a manual, facsimile or other electronic signature, each of which so executed shall be deemed to be an original, and such counterparts together shall be deemed to bear the same
date as the Issue Date.
- signature page follows -
IN WITNESS WHEREOF the parties hereto have executed this
Seventh Supplemental Indenture as of the Issue Date specified above.
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MANULIFE FINANCIAL CORPORATION
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By:
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“Philip J. Witherington”
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Name: Philip J. Witherington
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Title: Chief
Financial Officer
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By:
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“Halina K. von dem Hagen”
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Name: Halina K. von dem Hagen
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Title: Global
Treasurer and Head of Capital Management
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(corporate seal)
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BNY TRUST COMPANY OF CANADA, as Trustee
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By:
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“Bhawna Dhayal”
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Name: Bhawna Dhayal
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Title: Vice-President
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SCHEDULE A
Certificate No. 1
Unless this certificate is presented by an authorized representative of CDS Clearing and Depository Services Inc.
(“CDS”) to Manulife Financial Corporation (the “Issuer”) or its agent for registration of transfer, exchange or payment, and any certificate issued in respect thereof is registered in the name of CDS & CO., or in such other name as is requested
by an authorized representative of CDS (and any payment is made to CDS & CO. or to such other entity as is requested by an authorized representative of CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL since the registered holder hereof, CDS & CO., has a property interest in the securities represented by this certificate herein and it is a violation of its rights for another person to hold, transfer or deal with this certificate.
THIS DEBENTURE CONSTITUTES SUBORDINATED INDEBTEDNESS OF THE CORPORATION
MANULIFE FINANCIAL CORPORATION
(Existing under the Insurance Companies Act (Canada)),
2.818% FIXED/FLOATING SUBORDINATED DEBENTURES
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CUSIP No.:
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56501RAJ5
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Interest Calculation:
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Actual / 365
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Issue Date:
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May 12, 2020
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Registered Holder:
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CDS & Co.
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Maturity Date:
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May 13, 2035
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Principal Amount:
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$
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1,000,000,000
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Interest Rate:
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2.818% (0 – 10 years); 3-month CDOR + 1.82% (10 years - maturity)
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Interest Payment Dates:
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May 13 and November 13 (0 – 10 years, commencing on November 13, 2020);
February 13, May 13, August 13 and November 13 in each year,
commencing on August 13, 2030 (10 years - maturity)
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MANULIFE FINANCIAL CORPORATION (the “Corporation”) for value received hereby
acknowledges itself indebted and promises to pay to the Holder hereof on the maturity date or on such earlier or later date as the principal amount hereof may become due in accordance with the provisions of the Indenture hereinafter mentioned, the
above principal sum in lawful money of Canada on presentation and surrender of this Debenture at the head office of the Trustee (as defined below), if this instrument is issued in the book-entry system, or at any branch in Canada of the Royal Bank of
Canada, as selected by the Holder, if this instrument is issued in definitive form, as selected by the Holder, and to pay interest on the principal amount hereof from the date hereof, or from the last Interest Payment Date to which interest has been
paid or made available for payment, whichever is later, at the interest rate per annum set forth above calculated as set forth above, in like money; and should the Corporation at any time make default in the payment of any principal or interest, to
pay interest on the amount in default at the same rate, calculated as set forth above, in like money, at one of the said places, as selected by the Holder, and on the same dates. Whenever interest is computed on a basis of a year (the “deemed year”)
which contains fewer days than the actual number of days in the calendar year of calculation, such rate of interest shall be expressed as a yearly rate for purposes of the Interest Act (Canada) by multiplying
such rate of such interest by the actual number of days in the calendar year of calculation and dividing it by the number of days in the deemed year.
This Debenture is one of the debentures of the Corporation, issued or issuable in one series under the provisions of the
Trust Indenture made as of May 25, 2016 (the “Principal Indenture”) as supplemented by the Second Supplemental Indenture made as of July 27, 2017 and the Seventh Supplemental Indenture made as of May 12, 2020 (collectively, the “Indenture”) between
the Corporation and BNY Trust Company of
Canada (the “Trustee”). Reference is hereby expressly made to the Indenture for particulars of the rights of the Holders
of the Debentures and of the Corporation and of the Trustee in respect thereof and the terms and conditions upon which the Debentures are issued or may be issued and held, all to the same effect as if the provisions of the Indenture were herein set
forth, to all of which provisions the Holder of this Debenture by acceptance hereof assents. Capitalized terms used but not defined herein have the meanings attributed to them in the Indenture. The 2.818% Fixed/Floating Subordinated Debentures due
May 13, 2035 (the “Debentures”), of which this is one, are issuable by the Corporation from time to time in an unlimited aggregate principal amount, subject to the terms and conditions of the Indenture. The aggregate principal amount of debentures of
other series which may be issued under the Indenture is unlimited, but such debentures may be issued only upon the terms and subject to the conditions provided in the Indenture.
The indebtedness evidenced by this Debenture and all other debentures now or hereafter certified and delivered under the
Indenture is subordinated and subject in right of payment, to the extent and in the manner provided in the Indenture, to the prior payment of all Senior Indebtedness (as defined in the Indenture) and all Policy Liabilities (as defined in the
Indenture) of the Corporation, whether outstanding at the date of the Indenture or thereafter created, incurred, assumed or guaranteed.
The Debentures are direct obligations of the Corporation but are not secured by any mortgage, pledge, hypothec or other
charge.
As interest on this Debenture becomes due, the Corporation (except in the case of payment at maturity or on acceleration
or redemption, at which time payment of interest may be made upon surrender of this Debenture) shall, at least three business days prior to each date on which interest becomes due, forward or cause to be forwarded by (i) electronic transfer of
immediately available funds to the account designated by the applicable Holder, or (ii) first class mail, postage prepaid, to the Holder hereof, or in the case of joint Holders, to the joint Holder whose name first appears on the register, subject to
the provisions of the Indenture and in the manner provided therein, a cheque for such interest, in each case less any tax required by law to be deducted. Subject to the provisions of the Indenture, the transfer of such funds or the mailing of such
cheque shall satisfy and discharge all liability for interest on this Debenture to the extent of the sum represented by such cheque (plus the amount of any tax withheld).
Upon compliance with the provisions of the Indenture, Debentures of any denomination may be exchanged for an equal
aggregate principal amount of Debentures in any other authorized denomination or denominations.
The right is reserved to the Corporation to purchase or redeem Debentures for cancellation in accordance with the
provisions of the Indenture.
The principal hereof may become or be declared due and payable before the stated maturity date in the events, in the
manner, with the effect and at the times provided in the Indenture.
The Indenture contains provisions making binding upon all Holders of Debentures outstanding thereunder resolutions
passed at meetings of such Holders held in accordance with such provisions and instruments signed by the Holders of a specified majority of such Debentures outstanding.
This Debenture has not been and will not be registered under the United States Securities Act of 1933, as amended (the
“U.S. Securities Act”) or any state securities laws and may not be offered, sold or delivered, directly or indirectly, in the United States of America, its territories, its possessions and other areas subject to its jurisdiction or to, or for the
account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.
This Debenture may only be transferred, upon compliance with the conditions prescribed in the Indenture, in one of the
registers to be kept at the principal office of the Trustee in the City of Toronto by the Holder hereof or such Holder’s executors or administrator or other legal representatives, or such Holder’s attorney duly appointed by an instrument in form and
substance satisfactory to the Trustee or other registrar, and upon compliance with such reasonable requirements as the Trustee and/or other registrar may prescribe.
The Indenture and the Debentures shall be governed by, and construed in accordance with, the laws of the Province of
Ontario and the laws of Canada applicable therein.
This Debenture shall not become obligatory for any purpose until it has been certified by the Trustee under the
Indenture.
- signature page follows -
IN WITNESS WHEREOF this Debenture has been duly executed as of the Issue Date specified above.
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MANULIFE FINANCIAL CORPORATION
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By:
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Name: Philip J. Witherington
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Title: Chief Financial Officer
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c/s
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By:
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Name: Halina K. von dem Hagen
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Title: Global Treasurer and Head of Capital Management
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(FORM OF TRUSTEE’S CERTIFICATE)
TRUSTEE’S CERTIFICATE
This Definitive Security represents one of the Debentures of a series of 2.818% Fixed/Floating Subordinated Debentures
referred to in the Indenture within mentioned.
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BNY TRUST COMPANY OF CANADA,
Trustee
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By:
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Name: Bhawna Dhayal
Title: Vice-President |
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(FORM OF REGISTRATION PANEL)
REGISTRATION PANEL
(No writing hereon except by the Trustee or other registrar)
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Date of Registration
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In Whose Name Registered
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Signature of Trustee or Registrar
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(FORM OF CERTIFICATE OF TRANSFER)
CERTIFICATE OF TRANSFER
To assign this Debenture, fill in the form below:
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I or we assign and transfer this Debenture to
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(Print or type assignee’s name, address and postal code)
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(Insert assignee’s social insurance or security or tax identifying number)
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and irrevocably appoint agent to transfer this Debenture on the books of the
Corporation. The agent may substitute another to act for him.
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Date:
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Your Signature:
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Sign exactly as your name appears on the other side of this Debenture.
* Signature Guarantee
* This signature must be guaranteed by a Canadian chartered bank, trust company or a member of the
Investment Industry Regulatory Organization of Canada.
SCHEDULE B
FORM OF U.S. LEGEND
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF MANULIFE FINANCIAL CORPORATION (THE “CORPORATION”) THAT SUCH SECURITIES MAY BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS OR (C)
INSIDE THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE SECUR1TIES ACT OR (2) RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE, AND, IN EACH CASE, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS. IN THE CASE OF (C) ABOVE, THE HOLDER
MUST FURNISH TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE CORPORATION TO THE EFFECT THAT THE PROPOSED TRANSFER MAY BE EFFECTED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OR
APPLICABLE STATE SECURITIES LAWS. IF THE CORPORATION IS A “FOREIGN ISSUER” WITHIN THE MEANING OF REGULATION S AT THE TIME OF TRANSFER, A NEW CERTIFICATE, BEARING NO LEGEND, DELIVERY OF WHICH WILL CONSTITUTE “GOOD DELIVERY”, MAY BE OBTAINED FROM THE
TRUST COMPANY (THE “TRUSTEE”) UPON DELIVERY OF THIS CERTIFICATE AND A DULY EXECUTED DECLARATION IN A FORM SATISFACTORY TO THE TRUSTEE AND THE CORPORATION, TO THE EFFECT THAT THE SALE OF THE SECURITIES REPRESENTED HEREBY IS BEING MADE IN COMPLIANCE
WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT;
provided, that if the Debentures are being sold under Clause (B), the legend may be removed by
providing a declaration to the Trustee, to the following effect (or in such form as the Corporation or the Trustee may from time to time prescribe):
The undersigned (A) acknowledges that the sale of Debentures,
represented by certificate numbers ____________, to which this declaration relates is being made in reliance upon Rule 904 of Regulation S under the United States Securities Act of 1933 (the “Securities Act”) and (B) certifies that (1) it is
not an “affiliate” of Manulife Financial Corporation (as defined in Rule 405 under the Securities Act), (2) the offer of such securities was not made to a person in the United States and at the time the buy order was originated, the buyer was outside
the United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the United States and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a
buyer in the United States, (3) neither the seller nor any person acting on its behalf engaged or will engage in any directed selling efforts in connection with the offer and sale of such securities, and (4) the contemplated sale is not a
transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the Securities Act. Terms used herein have the meaning given to them by
Regulation S.
and, provided further, that if any such securities are being sold under paragraph (C)(2)
above the legend may be removed by delivery to the Trustee of an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, that such legend is no longer required under applicable requirements of the Securities Act or
state securities laws.
Prior to the issuance of the Debentures, the Corporation shall notify the Trustee, in writing,
concerning which certificates are to bear the legend described above. The Trustee will thereafter maintain a list of all registered holders from time to time of legended Debentures.