Cullen/Frost taps $25-par market; Brighthouse gains; Bank of America active, flat

By James McCandless

San Antonio, Nov. 12 – Moving into the second half of the week, the preferred space saw negativity while top traders were more volatile.

In primary activity, Cullen/Frost Bankers, Inc. priced a $150 million offering of $25-par series B non-cumulative perpetual preferred stockwith a dividend of 4.45% at par on Thursday.

Leading the session’s secondary trading, insurance provider Brighthouse Financial, Inc.’s new 5.375% series C non-cumulative preferred stock gained.

Meanwhile, Bank of America Corp.’s 4.375% series NN non-cumulative preferred stock was active but finished unchanged.

Also in finance, Synchrony Financial’s 5.625% series A non-cumulative perpetual preferreds followed the overall market lower.

Sector peer Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was lifted.

Elsewhere, REIT AGNC Investment Corp.’s 6.5% series E fixed-to-floating rate cumulative redeemable preferred stock was under pressure.

Cullen/Frost’s deal

In Thursday primary activity, Cullen/Frost priced a $150 million offering of $25-par series B non-cumulative perpetual preferred stock (Baa2/BBB-) with a dividend of 4.45% at par.

Morgan Stanley & Co. LLC, BofA Securities, Inc. and Goldman Sachs & Co. LLC are the bookrunners.

Dividends are payable on March 15, June 15, Sept. 15 and Dec. 15, starting on March 15, 2021.

The preferreds are redeemable on or after Dec. 15, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.

Brighthouse gains

Leading the Thursday session’s secondary trading, insurance provider Brighthouse’s new 5.375% series C non-cumulative preferred stock gained some ground.

The preferreds, trading under the temporary symbol “BTHFL,” were up 3 cents to close at $25.20 on volume of about 1.1 million shares.

The preferreds ended above par on Wednesday.

Bank of America flat

Meanwhile, Bank of America’s 4.375% series NN non-cumulative preferred stock was active but ultimately finished the day unchanged.

The preferreds (NYSE: BACPrO) held level to close at $25.38 with about 545,000 shares trading.

On Wednesday, the preferreds improved by 20 cents.

Also in the finance space, Synchrony Financial’s 5.625% series A non-cumulative perpetual preferreds followed the overall market lower.

The preferreds (NYSE: SYFPrA) declined by 11 cents to close at $25.85 on volume of about 397,000 shares.

Sector peer Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was lifted.

The preferreds (NYSE: COFPrJ) pushed up 4 cents to close at $25.05 with about 307,000 shares trading.

On Wednesday, the preferreds tacked on 2 cents.

AGNC lower

Elsewhere, real estate investment trust AGNC’s 6.5% series E fixed-to-floating rate cumulative redeemable preferred stock was under pressure.

The preferreds (Nasdaq: AGNCO) shaved off 12 cents to close at $22.09 on volume of about 224,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index closed Thursday down by 0.12%.

The index capped Wednesday up by 0.15%, ended Tuesday down by 0.09% and 0.87% better on Monday.

The iShares US Preferred Stock ETF was down 12 cents to $37.16.

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