Morning Commentary: Sempra plans $25-par notes; Brighthouse rises; Goldman better

By James McCandless

San Antonio, June 13 – The preferred market was on an early upward trend as the Wells Fargo Hybrid & Preferred Securities Financial index opened up by 0.09%.

Sempra Energy plans to price a $200 million offering of $25-par junior subordinated notes due 2079 at par with a coupon between 5.75% and 5.875%, sources said.

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

Lead managers are J.P. Morgan Securities LLC and RBC Capital Markets, LLC.

The notes are redeemable after five years. Prior to that, they are redeemable following a tax event at par or a ratings agency event at 102%.

In the secondary, insurance name Brighthouse Financial, Inc.’s 6.6% series A non-cumulative perpetual preferred stock was moving higher.

The preferreds (Nasdaq: BHFAP) were up 4 cents to $26.82 on volume of about 34,000 shares.

Meanwhile, Goldman Sachs Group, Inc.’s 5.5% series J fixed-to-floating rate perpetual non-cumulative preferreds and its series D floating-rate non-cumulative preferreds both started the day better.

The series J preferreds (NYSE: GSPrJ) were gaining 3 cents to $26.09 with about 28,000 shares trading.

The series D preferreds (NYSE: GSPrD) were better by 1 cent to $19.71 with about 20,000 shares trading.

Elsewhere, Voya Financial, Inc.’s new 5.35% series B fixed-rate reset non-cumulative preferred stock was declining at the open.

The preferreds, trading under the temporary symbol “VOYXL,” were losing 7 cents to $25.00 on volume of about 26,000 shares.

Communications name Qwest Corp.’s 6.5% notes due 2056 were also going against Thursday morning’s upward trend.

The notes (NYSE: CTBB) were off 4 cents to $22.71 with about 24,000 notes trading.

Asset manager Legg Mason, Inc.’s 5.45% junior subordinated notes due 2056 were climbing.

The notes (NYSE: LMHB) were up 6 cents to $24.69 on volume of about 17,000 notes.

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