Brighthouse taps $25-par market; OFS Credit preps offering; JPMorgan preferreds drop

By James McCandless

San Antonio, March 18 – Top traders in the preferred space were mixed as the primary market continued to churn.

Brighthouse Financial, Inc. priced $425 million of $25-par series A non-cumulative preferred stock with a dividend of 6.6%.

Also, OFS Credit Co., Inc. said it plans to price an offering of $25-par series A term preferred stock due 2024.

In the secondary, JPMorgan Chase & Co.’s 5.75% series DD and 6% series EE non-cumulative preferred stock dropped.

Meanwhile, Brookfield Property Partners LP’s new 6.5% series I class A cumulative redeemable perpetual preferred units closed slightly better.

Insurance provider American International Group, Inc.’s recent 5.85% series A non-cumulative perpetual preferreds were pushed lower.

Real estate investment trust Digital Realty Trust, Inc.’s 5.85% cumulative redeemable preferreds gained.

Sector peer AGNC Investment Corp.’s 6.875% series D fixed-to-floating rate cumulative redeemable preferreds also improved.

Brighthouse prices

Brighthouse Financial priced $425 million of $25-par series A non-cumulative preferred stock (Ba2/BBB-/BB+) with a dividend of 6.6% on Monday.

There is no greenshoe.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities, LLC and J.P. Morgan Securities LLC are the joint bookrunners.

The preferreds are redeemable on or after March 24, 2024. Prior to that, they are redeemable within 90 days after a regulatory capital event or a rating agency event.

OFS preps deal

OFS Credit plans to price an offering of $25-par series A term preferred stock due 2024.

Ladenburg Thalmann & Co. Inc., BB&T Capital Markets, Incapital LLC and National Securities Corp. are the joint bookrunners.

Newbridge Securities Corp. is the co-manager.

The preferreds are redeemable after five years.

JPMorgan drops

Meanwhile, in the secondary space, JPMorgan’s 5.75% series DD and 6% series EE non-cumulative preferred stock dropped by the close.

The series DD preferreds (NYSE: JPMPrD) were down 49 cents to close at $25.92 on volume of about 720,000 shares.

The series EE preferreds (NYSE: JPMPrC) were off 17 cents to close at $26.60 on volume of about 400,000 shares.

Brookfield up

Separately, real estate developer Brookfield Property’s new 6.5% series I class A cumulative redeemable perpetual preferred units were slightly better on Monday.

The preferreds, trading under the temporary symbol “BRKPF,” gained 2 cents to close at $24.82 with about 677,000 shares trading.

On Friday, the preferreds closed under par on their first trading day.

AIG lower

Insurance provider AIG’s recent 5.85% series A non-cumulative perpetual preferreds were pushed lower.

The preferreds (NYSE: AIGPrA) declined 3 cents to close at $25.25 on volume of about 530,000 shares.

On Friday, the preferreds picked up 3 cents.

Digital Realty gains

Real estate investment trust Digital Realty’s 5.85% cumulative redeemable preferreds were seen gaining in the session.

The preferreds (NYSE: DLRPrK) added 2 cents to close at $24.89 with about 391,000 shares trading.

Sector peer AGNC’s 6.875% series D fixed-to-floating rate cumulative redeemable preferreds followed the positive path.

The preferreds (Nasdaq: AGNCM) rose 12 cents to close at $25.05 on volume of about 292,000 shares.

On Friday, the preferreds added 3 cents.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.03% by the close, giving back a 0.13% gain from early Monday trading.

The iShares US Preferred Stock ETF was down 3 cents to $36.60.

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