Cowen sells $90 million $25-par senior notes; First Republic rides rising market higher

By James McCandless

San Antonio, June 6 – Traders reported elevated activity in the preferred market as newer issues dominate volume.

Cowen Inc. tapped the primary market 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 was a volume leader after pricing on Tuesday.

MetLife, Inc.’s new $700 million of 5.625% series E non-cumulative preferred stock remained in high demand.

Barclays plc’s 8.125% series 5 non-cumulative callable dollar preference shares popped up in activity.

Cowen prices

Cowen priced $90 million of $25-par senior notes due 2033 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 (see related story elsewhere in this issue).

First Republic up

First Republic’s new $300 million series I noncumulative perpetual preferred stock dominated the preferred market on its first day of trading with about 3,628,000 exchanged.

The deal was announced Tuesday morning.

The preferreds, which trade with a temporary ticker of FFPPP, were up 10 cents to $25.04.

MetLife rises

MetLife’s new upsized $805 million pricing of 5.625% series E non-cumulative preferred stock, while taking a backseat to First Republic’s new issue, traded in high volume with 1,058,000 shares turning over.

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 quoted up 3 cents to $25.28.

Barclays jumps

Barclays’ 8.125% series 5 non-cumulative callable dollar preference shares received renewed attention with about 771,000 shares trading.

Financial firms have led secondary trading amid redemption calls from Bank of America Corp., HSBC Holdings plc and others.

The stock (NYSE: BCSPrD) was up 13 cents to $26.36.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index ended up 0.10% at market close, adding to the 0.02% gain in early trading on Wednesday.

The iShares US Preferred Stock ETF was up 4 cents to close at $37.44.

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