Brookfield sells debentures; Brighthouse carried higher; Wells Fargo preferreds positive

By James McCandless

San Antonio, Nov. 17 – The preferred market shifted into negative territory on Tuesday, though top traders varied.

The primary space saw Brookfield Finance I (UK) plc price a $200 million offering of $25-par perpetual subordinated notes at par with a coupon of 4.5%.

On top of the secondary volume, insurance carrier Brighthouse Financial, Inc.’s new 5.375% series C non-cumulative preferred stock was carried higher.

Sector peer MetLife, Inc.’s 4.75% series F non-cumulative preferred stock rose as the afternoon came to an end.

Meanwhile, in the finance space, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock saw positive movements.

Also, Capital One Financial Corp.’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was under pressure.

Cullen/Frost Bankers, Inc.’s new 4.45% series B non-cumulative perpetual preferred stock ended the day on a downward track.

Brookfield’s deal

The primary space saw Brookfield Finance price a $200 million offering of $25-par perpetual subordinated notes at par with a coupon of 4.5%.

There is a $30 million greenshoe.

The notes will be guaranteed by Brookfield Asset Management Inc.

Wells Fargo Securities, LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are the bookrunners.

The notes are redeemable after five years at par. Prior to that, the notes are redeemable within 60 days after an accounting event, rating agency event or tax deduction event at par.

Brighthouse higher

On top of the session’s secondary volume, insurance carrier Brighthouse’s new 5.375% series C non-cumulative preferred stock was carried higher.

The preferreds, trading under the temporary symbol “BTHFL,” were up 21 cents to close at $25.41 on volume of about 1 million shares.

On Monday, the preferreds shot up 14 cents.

Sector peer MetLife’s 4.75% series F non-cumulative preferred stock rose as the afternoon came to an end.

The preferreds (NYSE: METPrF) improved by 13 cents to close at $27.14 with about 248,000 shares trading.

Wells Fargo up

Meanwhile, in the finance space, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock saw positive movements.

The preferreds (NYSE: WFCPrZ) picked up 7 cents to close at $25.71 on volume of about 379,000 shares.

Also, Capital One’s 4.8% series J fixed-rate non-cumulative perpetual preferred stock was under pressure for much of the day.

The preferreds (NYSE: COFPrJ) shaved off 5 cents to close at $24.99 with about 295,000 shares trading.

Cullen/Frost’s new 4.45% series B non-cumulative perpetual preferred stock ended the day on a downward track.

The preferreds, trading under the temporary symbol “CFRBL,” dropped 20 cents to close at $25.13 on volume of about 261,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index capped the day down by 0.17%.

The index was up 1.25% on Monday, finished Friday up by 0.19% and closed Thursday down by 0.12%.

The iShares US Preferred Stock ETF was down 4 cents to $37.68.

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