Cowen prices $90 million offering; First Republic down in active trading; MetLife flat

By James McCandless

San Antonio, June 7 – Trading volume in the preferred market remained at a high level, driven by recently priced issues.

Cowen Inc. tapped the primary market on Thursday with a $90 million offering of 7.75% $25-par senior notes due 2033.

First Republic Bank’s new series I noncumulative perpetual preferred stock led secondary volume again after pricing on Tuesday.

MetLife, Inc.’s $805 million 5.625% series E non-cumulative preferred stock was also among the volume leaders.

Bank of America Corp.’s recent 6% series GG non-cumulative preferred stock shot back up in volume.

Cowen prices

Cowen priced $90 million of $25-par senior notes due 2033 on Thursday in a deal announced Wednesday morning.

Morgan Stanley & Co. LLC, UBS Securities LLC and Cowen & Co., LLC are the joint bookrunners.

There is a $10 million over-allotment option.

The notes will be callable at par after five years.

The company intends to list the notes on the Nasdaq Global Select Market.

First Republic leads

First Republic’s new $300 million series I noncumulative perpetual preferred stock stayed in the top position of preferred trading with about 1,266,000 shares trading hands.

The deal was announced Tuesday morning.

The preferreds, which trade with a temporary ticker of “FFPPP,” were down 4 cents to $25.00.

MetLife level

MetLife’s $805 million of 5.625% series E non-cumulative preferred stock saw 1,118,000 shares turn over during the session.

The deal was priced on May 30 for $700 million and rose to $805 million in a greenshoe exercise on Friday.

The preferreds, with a temporary ticker of MTLLP, were level at $25.28.

Bank of America improves

Bank of America’s recent $1.2 billion issue of 6% series GG non-cumulative preferred stock (NYSE: BACPrB) was up 9 cents at $25.78 on about 664,000 shares trading.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended up 0.02% at the market close, reversing a 0.01% decline in early trading on Thursday.

The iShares US Preferred Stock ETF was up 5 cents to close at $37.49.

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