Morning Commentary: MetLife to price preferreds offering; secondary market down in early trading

By Abigail W. Adams

Portland, Me., March 20 – As the primary market prepares a new preferred stock offering, trading volume in the secondary market remained light with two market indicators down.

Metlife Inc. plans to price a benchmark-sized offering of $1,000-par perpetual series D fixed-to-floating rate non-cumulative preferred stock after the market close on Tuesday with a dividend in the 5.875% area, according to a market source.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and Wells Fargo Securities, LLC are joint bookrunners for the offering.

The preferred stock will carry a fixed dividend, payable semiannually, until March 15, 2028 when it will switch to a floating rate of Libor plus a to-be-determined spread.

The offering from Metlife is the second new deal of the week. W.R. Berkley Corp. priced an upsized $175 million of 5.7% subordinated debentures due 2058 (Baa3/BBB-/BBB-) at par of $25 after the market close Monday.

Price talk had been for a coupon in the 5.75% area with the deal size initially $100 million, according to a market source.

While the primary market remains active, the secondary market continued to see losses.

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.06% shortly before noon ET. The U.S. iShares Preferred Stock ETF was down 0.15%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.