AXA preferreds under water; MetLife declines; Energy Transfer falls

By James McCandless

San Antonio, Jan. 7 – The preferred space spent the Tuesday session extending a negative run from the previous day.

In primary activity, MetLife, Inc. priced a $1 billion offering of $25-par series F non-cumulative preferred stock at par with a dividend of 4.75% on Tuesday.

Meanwhile, its 5.625% series E non-cumulative preferred stock saw a decline.

Leading the volume for the day, AXA Equitable Holdings, Inc.’s 5.25% series A non-cumulative preferred stock was under water.

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

Sector peer Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock ended on the negative side.

Oil and gas name Energy Transfer Operating, LP’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units fell.

MetLife prices

In primary market activity, insurance provider MetLife priced a $1 billion offering of $25-par series F non-cumulative preferred stock at par with a dividend of 4.75% on Tuesday.

There is no greenshoe.

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

Dividends are payable on March 15, June 15, Sept. 15 and Dec. 15, commencing on June 15, 2020.

The preferreds are redeemable on or after March 15, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital event at par or rating agency event at $25.50.

Meanwhile, the company’s established 5.625% series E non-cumulative preferred stock saw a decline as the new issue priced.

The preferreds (NYSE: METPrE) were down 4 cents to $27.56 on volume of about 295,000 shares.

AXA lower

Leading the volume in the secondary today, AXA’s 5.25% series A non-cumulative preferred stock was under water for much of the session.

The preferreds (NYSE: EQHPrA) shed 5 cents to close at $25.97 with about 408,000 shares trading.

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

The preferreds (NYSE: ALLYPrA) dipped 4 cents to close at $26.10 on volume of about 271,000 shares.

Sector peer Capital One’s 5% series I fixed-rate non-cumulative perpetual preferred stock ended activity on the negative side.

The preferreds (NYSE: COFPrI) shaved off 1 cent to close at $25.18 with about 265,000 shares trading.

On Tuesday, the preferreds gave back 10 cents.

Energy Transfer falls

Oil and gas pipeline name Energy Transfer’s 7.6% series E fixed-to-floating rate cumulative redeemable perpetual preferred units fell during the day.

The preferreds (NYSE: ETPPrE) dived 14 cents to close at $25.65 on volume of about 261,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index capped the day down by 0.28%, adding onto the 0.15% dip from early Tuesday trading.

The iShares US Preferred Stock ETF was down 5 cents to $37.81.

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