Brighthouse taps $25-par market; Public Storage under par; Bank of America down

By James McCandless

San Antonio, Nov. 10 – During the Tuesday session, the preferred space reversed some of the gains made during the previous day.

In the primary pipeline, Brighthouse Financial, Inc. priced an upsized $500 million of $25-par series C non-cumulative preferred stock on Tuesday with a dividend of 5.375%.

Far and away the volume leader, REIT Public Storage’s new $150 million 3.9% series O cumulative preferred shares ended their first day under par.

Elsewhere, in the finance space, Bank of America Corp.’s 4.375% series NN non-cumulative preferred stock was pushed down.

Sector peer Ally Financial Corp.’s 8.125% series 2 fixed-to-floating rate trust preferred securities were under pressure.

Capital One Financial Corp.’s 4.8% series J and 5% series I fixed-rate non-cumulative perpetual preferreds both trailed.

Meanwhile, telecom services provider AT&T, Inc.’s 4.75% series C perpetual preferred stock lost ground at the end of the day.

Brighthouse prices

In the Tuesday primary pipeline, Brighthouse priced an upsized $500 million of $25-par series C non-cumulative preferred stock (Ba2/BBB-/BB+) on Tuesday with a dividend of 5.375%.

There is a $75 million greenshoe.

The deal came in over the original $200 million offering and under talk for a yield in the 5.5% area.

Morgan Stanley & Co. LLC, BofA Securities Inc., UBS Securities LLC, Wells Fargo Securities, LLC and J.P. Morgan Securities LLC are the bookrunners. Goldman Sachs & Co. LLC was a lead manager.

The preferreds are redeemable on or after Dec. 25, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital event at par or within 90 days after a ratings agency event at $25.50.

Public Storage below par

Far and away the day’s secondary volume leader, real estate investment trust Public Storage’s new $150 million 3.9% series O cumulative preferred shares ended their first day under par.

The preferreds, trading under the temporary symbol “PSAOL,” were seen closing at $24.69 on volume of about 3.8 million shares.

The deal priced on Monday.

Bank of America off

Elsewhere, in the finance space, Bank of America’s 4.375% series NN non-cumulative preferred stock was pushed down.

The preferreds (NYSE: BACPrO) shaved off 5 cents to close at $25.18 with about 693,000 shares trading.

On Monday, the preferreds dipped 5 cents.

Sector peer Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities were under pressure.

The preferreds (NYSE: ALLYPrA) declined by 15 cents to close at $26.22 on volume of about 239,000 shares.

Capital One’s 4.8% series J and 5% series I fixed-rate non-cumulative perpetual preferreds both trailed.

The series J preferreds (NYSE: COFPrJ) drifted down 4 cents to close at $24.99 with about 231,000 shares trading.

On Monday, the preferreds picked up 8 cents.

The series I preferreds (NYSE: COFPrI) were docked 13 cents to close at $25.69 with about 190,000 shares trading.

AT&T loses

Meanwhile, telecom services provider AT&T’s 4.75% series C perpetual preferred stock lost ground at the end of the day.

The preferreds (NYSE: TPrC) fell by 12 cents to close at $26.17 on volume of about 186,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index ended the session down by 0.09%.

The index ended 0.87% better on Monday, was 0.45% lower on Friday and garnered 0.30% on Thursday.

The iShares US Preferred Stock ETF was down 9 cents to $37.18.

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