MetLife sells $500 million preferreds; W.R. Berkley baby bonds lower; QTS, Compass list

By Abigail W. Adams

Portland, Me., March 20 – The preferred stock primary market remained active on Tuesday with one new deal pricing after the market close.

MetLife Inc. sold $500 million, or 500,000 shares, of $1,000-par perpetual series D fixed-to-floating rate non-cumulative preferred stock (Baa2/BBB/BBB) after the market close on Tuesday at par with an initial dividend of 5.875%, according to a FWP filing with the Securities and Exchange Commission.

Price talk had been for a benchmark-sized offering with a dividend in the 5.875% area, according to a market source.

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 on Monday.

W.R. Berkley’s 5.7% baby bonds were volatile during Tuesday’s session and at times traded well above their issue price. However, the new baby bonds closed the day down alongside the broader preferreds space.

The Wells Fargo Hybrid & Preferred Securities Financial index closed Tuesday down 0.17%. The U.S. iShares Preferred Stock ETF closed Tuesday down 0.29%.

QTS Realty Trust, Inc.’s recently priced 7.125% series A cumulative preferred stock and Compass Diversified Holdings’ recently priced 7.875% series B cumulative preferred stock are now listed for trade on the New York Stock Exchange.

QTS continues to trade above its $25-par issue price while Compass struggles.

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