Selective Insurance prices preferreds; Wells Fargo lifted; Brighthouse positive

By James McCandless

San Antonio, Dec. 2 – In the middle of the week, the preferred space continued to see positive activity.

In primary activity, Selective Insurance Group, Inc. priced a $200 million offering of $25-par series B non-cumulative preferred stock with a dividend of 4.6% on Wednesday.

As the secondary volume leader, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock was lifted.

Elsewhere in the finance space, Bank of America Corp.’s 4.375% series NN non-cumulative preferred stock picked up steam.

Sector peer Capital One Financial Corp.’s 4.8% series J and 5% series I fixed-rate non-cumulative perpetual preferred stocks were both seen improving.

Insurance carrier Brighthouse Financial, Inc.’s 5.375% series C non-cumulative perpetual preferreds capped the day on the positive side.

Meanwhile, MetLife, Inc.’s 4.75% series F non-cumulative preferred stock was seen adding by the end of the afternoon.

Selective prices

In the day’s primary activity, Selective Insurance priced a $200 million offering of $25-par series B non-cumulative preferred stock with a dividend of 4.6%.

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

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 event at par or within 90 days after a rating agency event at 102.

Wells Fargo lifted

As the Wednesday secondary volume leader, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock was lifted to higher ground.

The preferreds (NYSE: WFCPrZ) were up 6 cents to close at $25.54 on volume of about 370,000 shares.

Elsewhere in the finance space, Bank of America’s 4.375% series NN non-cumulative preferred stock picked up steam.

The preferreds (NYSE: BACPrO) picked up 11 cents to close at $26.06 with about 363,000 shares trading.

On Tuesday, the preferreds tacked on 1 cent.

Sector peer Capital One’s 4.8% series J and 5% series I fixed-rate non-cumulative perpetual preferred stocks were both seen improving.

The series J preferreds (NYSE: COFPrJ) rose 9 cents to close at $25.38 on volume of about 321,000 shares trading.

On Tuesday, the preferreds improved by 10 cents.

The series I preferreds (NYSE: COFPrI) garnered 3 cents to close at $26.04 on volume of about 203,000 shares trading.

Brighthouse positive

Insurance carrier Brighthouse’s 5.375% series C non-cumulative perpetual preferreds capped the day on the positive side.

The preferreds (Nasdaq: BHFAN) gained 3 cents to close at $25.99 with about 254,000 shares.

On Tuesday, the preferreds dipped 5 cents.

Meanwhile, MetLife’s 4.75% series F non-cumulative preferred stock was seen adding to its position by the end of the afternoon.

The preferreds (NYSE: METPrF) moved up 1 cent to close at $26.67 on volume of about 168,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index finished Wednesday up by 0.35%.

The index was up by 0.12% on Tuesday and finished Monday down by 0.50%.

The iShares US Preferred Stock ETF was up 4 cents to $37.70.

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