Torys, McCarthy Tétrault, Davies, Aird & Berlis among legal counsel
Deal: Manulife announces Subordinated Debenture issue
Value: $1 billion
This week’s deals roundup highlights major financial moves, including debenture issuances by Manulife and iA Financial, alongside AirBoss’ approximately $253 million (US$180 million) credit agreement with TD Bank and CIBC. Torys, McCarthy Tétrault, Davies, and Aird & Berlis are among the legal counsel in this week’s roundup.
Manulife Financial Corporation announced the issuance of $1 billion in 4.064 percent fixed/floating subordinated debentures maturing on December 6, 2034, with interest transitioning from fixed semi-annual payments to a floating rate tied to Daily Compounded CORRA plus 1.25 percent starting December 2029.
A syndicate of dealers co-led by RBC Capital Markets, CIBC Capital Markets and Scotiabank acted as agents for the offering. BMO Nesbitt Burns, National Bank Financial, TD Securities, Manulife Wealth, Merrill Lynch Canada, UBS Securities Canada, BNP Paribas (Canada) Securities, Desjardins Securities, Laurentian Bank Securities, and Raymond James also acted as agents.
Torys LLP is serving as legal counsel to Manulife while McCarthy Tétrault LLP is acting as legal advisor to the dealers.
Net proceeds of approximately $996 million will be used for corporate purposes, including subsidiary investments and potential redemptions.
The offering is expected to close on December 6, 2024.
iA Financial Group closed its previously announced offering of $400 million aggregate principal amount of 4.131 percent fixed/floating unsecured subordinated debentures maturing on December 5, 2034.
The offering was led by National Bank Financial Inc., RBC Dominion Securities Inc., and TD Securities Inc., with participation from BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., iA Private Wealth Inc., Casgrain & Company Limited, and UBS Securities Canada Inc.
Torys LLP is serving as legal counsel to iA Financial while McCarthy Tétrault LLP is acting as legal advisor to the agents.
Interest on the debentures will be payable in arrears in equal semi-annual installments on June 5 and December 5, in each year, commencing on June 5, 2025 and continuing until December 5, 2029. From December 5, 2029, interest on the debentures will be payable at a rate per annum equal to Daily Compounded CORRA plus 1.35 percent payable quarterly in arrears on the 5th day of each of March, June, September and December in each year, commencing on March 5, 2030.
AirBoss of America Corp. has entered into new senior secured credit facilities consisting of aggregate financing of up to approximately $253 million (US$180 million), which are replacing its current senior secured revolving credit facilities.
The new credit facilities consist of a revolving asset-based credit facility co-arranged by The Toronto-Dominion Bank (TD Bank) and Canadian Imperial Bank of Commerce (CIBC) and a non-revolving term loan facility provided by Great Rock Capital Partners, LLC.
Davies Ward Phillips & Vineberg LLP is serving as legal counsel to AirBoss while Aird & Berlis LLP acted as legal advisor to TD Bank and CIBC.
“The new credit facilities will provide AirBoss with the financial flexibility it requires to continue executing our strategic transition,” said AirBoss president and co-CEO Chris Bitsakakis. “We are excited to work with our new team of financing partners, as we continue our goal of transforming AirBoss into a global market leader in the custom rubber compounding market and the industries which we serve.”
Both facilities are due to mature on November 29, 2027.
