Published on 9/8/2020 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: MetLife prices $1 billion 3.85% fixed-rate reset non-cumulative preferreds at par
By James McCandless
San Antonio, Sept. 8 – MetLife, Inc. priced a $1 billion offering of $1,000-par series G fixed-rate reset non-cumulative preferred stock (Baa2/BBB/BBB) with a dividend of 3.85% at par on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
The deal came in below talk for a yield in the 4.125% to 4.25% area.
BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the bookrunners.
Dividends are payable on March 15 and Sept. 15, starting on March 15, 2021.
On Sept. 15, 2025 and every five years thereafter, the dividend resets to a rate of the Treasuries plus a 27.4 basis points.
The preferreds are redeemable on or after Sept. 15, 2025 and every dividend payment date at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital event at par or after a rating agency event at 102.
MetLife plans to use the proceeds for general corporate purposes, which may include the redemption or repurchase in part of its 5.25% series C fixed-to-floating rate non-cumulative preferred stock.
The company does not plan to list the preferreds on any securities exchange.
MetLife is a New York-based insurance provider.
| Issuer: | MetLife, Inc.
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| Description: | Series G fixed-rate reset non-cumulative preferred stock
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| Amount: | $1 billion, or 1 million shares
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| Maturity: | Perpetual
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| Bookrunners: | BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
|
| Senior co-managers: | Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
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| Co-managers: | BNY Mellon Capital Markets, LLC, Commerz Markets LLC, Credit Agricole Securities (USA) Inc., ICBC Standard Bank plc, nabSecurities, LLC and NatWest Markets Securities Inc.
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| Junior co-managers: | Academy Securities, Inc. and Penserra Securities LLC
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| Dividend: | 3.85%; resets on Sept. 15, 2025 and every five years thereafter to the rate of Treasuries plus 27.4 bps
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| Price: | Par of $1,000
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| Yield: | 3.85%
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| Call: | On or after Sept. 15, 2025 and every dividend payment date at par; prior to that, within 90 days after a regulatory capital event at par or after a rating agency event at 102
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| Pricing date: | Sept. 8
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| Settlement date: | Sept. 10
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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| Talk: | 4.125%-4.25% area
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