CNO, Trustmark tap market; SoCal Edison preferreds lifted; Brighthouse negative

By James McCandless

San Antonio, Nov. 18 – In a middle-of-the-week session, the preferred space was dragged down while top traders diverged.

In primary activity, CNO Financial Group, Inc. priced a $150 million offering of $25-par subordinated debentures due Nov. 25, 2060 with a coupon of 5 1/8%.

Also, Trustmark Corp. priced a $125 million offering of $1,000-par fixed-to-floating rate subordinated notes due Dec. 1, 2030 with an initial coupon of 3.625% at par.

Atop the secondary market, Southern California Edison Co.’s 5.75% cumulative fixed-to-floating rate trust preferred securities and 5% cumulative trust preferred securities were both lifted.

Meanwhile, insurance carrier Brighthouse Financial, Inc.’s new 5.375% series C non-cumulative preferred stock ended with negativity.

Property owner Public Storage’s 3.9% series O cumulative preferred shares ended the afternoon on higher ground.

Sector peer Invesco Mortgage Capital Inc.’s 7.5% series C cumulative redeemable preferreds were in decline.

AGNC Investment Corp., another REIT, saw its 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock rise.

CNO prices

In midweek primary activity, CNO priced a $150 million offering of $25-par subordinated debentures (Ba1/BB/BB) due Nov. 25, 2060 with a coupon of 5 1/8%.

BofA Securities, Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the bookrunners.

The debentures are redeemable on or after Nov. 25, 2025 at par. Prior to that, the debentures are redeemable 90 days after a tax event at par, a regulatory capital event at par or a rating agency event at 102.

Trustmark’s deal

Also, Trustmark priced a $125 million offering of $1,000-par fixed-to-floating rate subordinated notes (BBB-/BBB) due Dec. 1, 2030 with an initial coupon of 3.625% at par.

Morgan Stanley & Co. LLC and Piper Sandler & Co. are the bookrunners.

The coupon is fixed until Dec. 1, 2025, then converts to a floating rate of the three-month SOFR plus 338.7 basis points.

The notes are redeemable on or after Dec. 1, 2025 at par. Prior to that, the notes are redeemable after a change in tax law, a tier 2 capital event or if the company is required to register as an investment company at par.

SoCal Edison lifted

Atop the Wednesday secondary market, utilities provider Southern California’s 5.75% cumulative fixed-to-floating rate trust preferred securities and 5% cumulative trust preferred securities were both lifted.

The 5.75% preferreds (NYSE: SCEPrH) were up 2 cents to close at $23.97 on volume of about 887,000 shares.

The 5% preferreds (NYSE: SCEPrL) added 24 cents to close at $23.24 on volume of about 710,000 shares.

Brighthouse off

Meanwhile, insurance carrier Brighthouse’s new 5.375% series C non-cumulative preferred stock ended with negativity.

The preferreds, trading under the temporary symbol “BTHFL,” shaved off 1 cent to close at $25.64 with about 650,000 shares.

On Tuesday, the preferreds shot up 21 cents.

Public Storage higher

Property owner Public Storage’s 3.9% series O cumulative preferred shares ended the afternoon on higher ground.

The preferreds (NYSE: PSAPrO) gained 11 cents to close at $24.95 on volume of about 479,000 shares.

Sector peer Invesco Mortgage’s 7.5% series C cumulative redeemable preferreds were in decline at the conclusion of the day’s activity.

The preferreds (NYSE: IVRPrC) were docked 2 cents to close at $22.06 with about 318,000 shares trading.

AGNC, another real estate investment trust, saw its 6.125% series F fixed-to-floating rate cumulative redeemable preferred stock rise.

The preferreds (Nasdaq: AGNCP) picked up 11 cents to close at $21.74 on volume of about 267,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index rounded out the day down by 0.27%.

The index capped Tuesday down by 0.17%, was up 1.25% on Monday and finished Friday up by 0.19%.

The iShares US Preferred Stock ETF was down 14 cents to $37.54.

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