Sempra Energy taps $25-par market; Southern California Edison mixed; Athene declines

By James McCandless

San Antonio, June 13 – The preferred secondary market spent Thursday trending positive as more supply came to the primary space.

Sempra Energy sold an upsized $700 million of $25-par junior subordinated notes due July 1, 2079 at par with a coupon of 5.75%.

Leading the secondary, Southern California Edison, a subsidiary of Edison International, saw its 5% cumulative trust preferred securities and 5.75% fixed-to-floating rate cumulative trust preferred securities trade mixed.

In the retirement space, Athene Holding Ltd.’s recent 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares declined.

Elsewhere, Voya Financial, Inc.’s new 5.35% series B fixed-rate reset non-cumulative preferreds saw a boost.

Insurance provider Brighthouse Financial, Inc.’s 6.6% series A non-cumulative perpetual preferred stock was also moving upward.

Elsewhere, in finance, Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities rose.

Sempra taps market

Sempra sold an upsized $700 million of $25-par junior subordinated notes due July 1, 2079 at par with a coupon of 5.75%.

There is a $105 million greenshoe.

The deal, announced Thursday morning, was upsized from an initial $200 million and came in at the low end of talk for a coupon between 5.75% and 5.875%.

BofA Securities, Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the joint bookrunners.

The notes are redeemable on or after Oct. 1, 2024 at par. Prior to that, they are redeemable following a tax event at par or a ratings agency event at 102%.

SoCal Edison mixed

At the top of the secondary market, Southern California Edison’s 5% cumulative trust preferred securities and 5.75% fixed-to-floating rate cumulative trust preferred securities traded mixed.

The 5% preferreds (NYSE: SCEPrL) were up 2 cents to close at $20.52 on volume of about 2.1 million shares.

The 5.75% preferreds (NYSE: SCEPrH) closed level at $23.85 on volume of about 1.5 million shares.

Athene down

Meanwhile, Athene’s recent 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares were in decline.

The preferreds, trading under the temporary symbol “ATHDF,” lost 9 cents to close at $25.90 with about 1.4 million shares trading.

On Wednesday, the preferreds edged 1 cent lower.

Voya gains

Elsewhere, Voya’s new 5.35% series B fixed-rate reset non-cumulative preferreds saw a boost late in the Thursday session.

The preferreds, trading under the temporary symbol “VOYXL,” gained 23 cents to close at $25.05 on volume of about 1.1 million shares.

Brighthouse better

Insurance provider Brighthouse’s 6.6% series A non-cumulative perpetual preferred stock also saw an upward trend.

The preferreds (Nasdaq: BHFAP) picked up 14 cents to close at $26.92 with about 216,000 shares trading.

Ally rises

Elsewhere, in the finance space, Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities were rising.

The preferreds (NYSE: ALLYPrA) added 10 cents to close at $26.20 on volume of about 215,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.16% at session’s end, almost doubling the 0.09% increase from early Thursday trading.

The iShares US Preferred Stock ETF was up 9 cents to $36.77.

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