Brunswick sells $25-par notes; Bank of America preferreds mixed; Hartford declines

By James McCandless

San Antonio, Nov. 26 – The preferred market opened up a new week continuing the negative trend exhibited last week.

In the primary space, Brunswick Corp. priced $115 million of $25-par senior notes due Jan. 15, 2049 at par with a coupon of 6.625%.

In the secondary, Bank of America Corp.’s 5.875% series HH non-cumulative preferreds and its 6% series GG non-cumulative preferreds were mixed.

Elsewhere in finance, Wells Fargo & Co.’s 5.85% series Q fixed-to-floating rate non-cumulative preferreds ended lower.

JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock ended the day level.

Insurance provider the Hartford Financial Services Group, Inc.’s 6% series G non-cumulative preferreds also saw a drop.

Meanwhile, telecom name AT&T Inc.’s 5.35% global notes due 2066 followed the negative trend.

Brunswick’s deal

Brunswick priced $115 million of $25-par senior notes (Baa2/BBB-/BBB) due Jan. 15, 2049 at par with a coupon of 6.625%.

The deal was announced Monday morning.

There is a $17.25 million greenshoe.

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

Bank of America mixed

At the top of secondary activity, Bank of America’s 5.875% series HH non-cumulative preferreds and its 6% series GG non-cumulative preferreds ended the session mixed.

The series HH preferreds (NYSE: BACPrK) lost 3 cents to close at $24.50 on volume of about 292,000 shares.

The series GG preferreds (NYSE: BACPrB) ended level at $25.06 on volume of about 275,000 shares.

Elsewhere in the finance space, Wells Fargo’s 5.85% series Q fixed-to-floating rate non-cumulative preferreds declined.

The preferreds (NYSE: WFCPrQ) were down 4 cents to close at $25.30 with about 241,000 shares trading.

JPMorgan’s 5.75% series DD non-cumulative preferred stock also ended the day flat.

The preferreds (NYSE: JPMPrD) were level to close at $24.64 on volume of about 231,000 shares.

Hartford rises

In the insurance space, Hartford’s 6% series G non-cumulative preferreds also saw a decline at the end of the day’s trading.

The preferreds (NYSE: HIGPrG) were down 28 cents to close at $25.00 with about 145,000 shares trading.

AT&T lower

Telecom giant AT&T’s 5.35% global notes due 2066 also saw a negative session.

The notes (NYSE: TBB) were off 20 cents to close at $23.16 on volume of about 115,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.12% at the end of Monday’s session after rising 0.21% in early trading.

The iShares US Preferred Stock ETF edged 1 cent lower to $35.36.

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