MetLife’s new preferreds lead rising market; Bank of America adds to recent gains

By James McCandless

San Antonio, June 5 – Trading trended upward in the preferred market, largely led by newer issues.

MetLife, Inc.’s new $805 million of 5.625% series E non-cumulative preferred stock remained the most active of the session.

Bank of America Corp.’s recent 6% series GG non-cumulative preferred stock showed continued gains amid strong demand.

Energy Transfer Partners, LP’s recent 7.375% series C preferreds traded upward.

MetLife gains

MetLife’s $805 million of 5.625% series E non-cumulative preferreds continued to be in high demand this week with 1,924,000 shares trading.

The issuer originally intended to sell $200 million with a dividend of between 5.625% and 5.75%. The issue, which priced on Wednesday for $700 million, was expanded again on Friday to its final size with the exercise of its $105 million greenshoe.

The preferreds, with a temporary ticker of MTLLP, were up 5 cents to $25.25.

Bank of America rises

Bank of America’s recent $1.2 billion issue of 6% series GG non-cumulative preferred stock, with about 684,000 shares exchanged, remained a favorite in preferred trading.

The preferreds (NYSE: BACPrB) were up 10 cents to $25.72.

Energy Transfer improves

Energy Transfer’s recent 7.375% series C fixed-to-floating rate cumulative redeemable perpetual preferred units sustained early trading levels with about 485,000 shares exchanged.

The company announced its intention on Tuesday to price four tranches of senior notes.

A recent first-quarter report showed mixed results, with earnings missing analyst estimates and revenue beating predictions.

The preferreds (NYSE: ETPPrC) were up 4 cents to $25.06.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended up 0.31% at market close, turning around a 0.02% drop in early trading on Tuesday.

The iShares US Preferred Stock ETF was up 8 cents to close at $37.40.

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