Brunswick, Air Lease tap market; JPMorgan preferreds trade mixed; MetLife improves

By James McCandless

San Antonio, Feb. 26 – Two new $25-par deals came to the primary market on Tuesday as top traders in the secondary were mixed.

Brunswick Corp. priced $200 million of $25-par senior notes due April 15, 2049 with a coupon of 6.375%.

Air Lease Corp. priced $250 million of $25-par series A fixed-to-floating rate non-cumulative perpetual preferred stock with an initial dividend of 6.15%.

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

Elsewhere in finance, PNC Financial Services Group, Inc.’s 6.125% series P fixed-to-floating rate non-cumulative perpetual preferreds fell.

Stifel Financial Corp.’s recent 6.25% series B non-cumulative preferred stock moved lower again.

Meanwhile, in telecom, Qwest Corp.’s 6.125% notes due 2053 and 6.5% notes due 2056 were mixed.

Insurer MetLife, Inc.’s 5.625% series E non-cumulative preferreds closed higher.

Brunswick prices

Brunswick priced $200 million of $25-par senior notes (Baa2/BBB-/BBB) due April 15, 2049 with a coupon of 6.375%.

There is a $30 million greenshoe.

The offering was announced Monday morning.

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

J.P. Morgan Securities LLC is the lead manager.

The notes are redeemable on or after April 15, 2024. Prior to that, they are redeemable after a change-of-control triggering event at 100% of the principal amount plus accrued and unpaid interest.

Air Lease taps market

Air Lease priced $250 million of $25-par series A fixed-to-floating rate non-cumulative perpetual preferred stock (BB+/BB+/Kroll: BBB) with an initial dividend of 6.15%.

There is no greenshoe.

The deal was announced Tuesday morning.

BofA Merrill Lynch, Morgan Stanley, Wells Fargo and JPMorgan are the joint bookrunners.

The preferreds are redeemable on or after March 15, 2024 at par. Prior to that, they are redeemable within 90 days following a rating agency event at $25.50 per share plus any declared and unpaid dividends.

JPMorgan mixed

Leading trading volume in the secondary, JPMorgan’s 6% series EE and 5.75% series DD no-cumulative preferred stock were mixed.

The series EE preferreds (NYSE: JPMPrC) were down 1 cent to close at $26.08 on volume of about 461,000 shares.

On Monday, the preferreds picked up 6 cents.

The series DD preferreds (NYSE: JPMPrD) were up 17 cents to close at $25.50 on volume of about 352,000 shares.

On Monday, the preferreds dropped 8 cents.

Elsewhere in the finance space, PNC Financial’s 6.125% series P fixed-to-floating rate non-cumulative perpetual preferreds saw a slight drop.

The preferreds (NYSE: PNCPrP) shaved off 1 cent to close at $26.59 with about 352,000 shares trading.

Stifel’s recent 6.25% series B non-cumulative preferred stock extended a negative run.

The preferreds, trading under the temporary symbol “SFEIP,” declined by 4 cents to close at $25.14 on volume of about 337,000 shares.

On Monday, the preferreds lost 4 cents.

Qwest mixed

Meanwhile, in the communications sector, Qwest’s 6.125% notes due 2053 and 6.5% notes due 2056 also ended the session mixed.

The 6.125% notes (NYSE: CTY) dropped 37 cents to close at $23.40 with about 256,000 notes trading.

On Monday, the notes picked up 2 cents.

The 6.5% notes (NYSE: CTBB) gained 5 cents to close at $23.00 with about 199,000 notes trading.

MetLife gains

Insurance provider MetLife’s 5.625% series E non-cumulative preferreds were positive by the end of the session.

The preferreds (NYSE: METPrE) were up 8 cents to close at $25.08 on volume of about 190,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.05% at the close, reversing a 0.02% gain in early Tuesday trading.

The iShares US Preferred Stock ETF fell 9 cents to $36.15.

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