American Financial, MetLife tap market; Wells Fargo leads dive; AT&T preferreds lose

By James McCandless

San Antonio, Sept. 8 – At the beginning of a week shortened by the Labor Day holiday, the preferred market was getting dragged down, emulating the common market.

In primary activity, American Financial Group, Inc. sold a $200 million offering of $25-par subordinated debentures due Sept. 15, 2060 with a coupon of 4.5%.

Also, MetLife, Inc. priced a $1 billion offering of $1,000-par series G fixed-rate reset non-cumulative preferred stock with a dividend of 3.85% at par.

At the top of the secondary, Wells Fargo & Co.’s 4.75% series Z non-cumulative perpetual class A preferred stock led with a dive.

Elsewhere in the finance space, Capital One Financial Corp.’s 5% series I fixed-rate non-cumulative perpetual preferred stock followed the trend.

Telecom services provider AT&T, Inc.’s 4.75% series C perpetual preferred stock lost ground at the end of the day.

Closed-end fund Gladstone Capital Corp.’s 6.125% notes due 2023 weakened as the afternoon came to the close.

Meanwhile, retirement name Athene Holding Ltd.’s 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares fell.

American Financial prices

Kicking off the week’s primary activity, American Financial sold a $200 million offering of $25-par subordinated debentures (Baa2/BBB-) due Sept. 15, 2060 with a coupon of 4.5%.

BofA Securities, Inc., Wells Fargo Securities, LLC and J.P. Morgan Securities LLC are the bookrunners.

The debentures are redeemable on or after Sept. 15, 2025 at par. They are also redeemable within 90 days of a tax event at par or within 90 days of a rating agency event at 102.

MetLife’s deal

Also, MetLife priced a $1 billion offering of $1,000-par series G fixed-rate reset non-cumulative preferred stock (Baa2/BBB/BBB) with a dividend of 3.85% at par.

The deal came in below talk for a yield in the 4.125% to 4.25% area.

BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the bookrunners.

On Sept. 15, 2025 and every five years thereafter, the dividend resets to Treasuries plus 27.4 basis points.

The preferreds are redeemable on or after Sept. 15, 2025 and every dividend payment date at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital event at par or after a rating agency event at 102.

Wells Fargo dives

At the top of the Tuesday secondary space, Wells Fargo’s 4.75% series Z non-cumulative perpetual class A preferred stock led volume with a dive.

The preferreds (NYSE: WFCPrZ) were down 23 cents to close at $24.60 on volume of about 483,000 shares.

On Friday, the preferreds shaved off 5 cents.

Elsewhere in the finance space, Capital One’s 5% series I fixed-rate non-cumulative perpetual preferred stock followed the trend.

The preferreds (NYSE: COFPrI) gave up 32 cents to close at $24.84 with about 262,000 shares trading.

AT&T loses

Telecom services provider AT&T’s 4.75% series C perpetual preferred stock lost ground at the end of the day.

The preferreds (NYSE: TPrC) were docked 20 cents to close at $25.08 on volume of about 303,000 shares.

On Friday, the preferreds gave back 12 cents.

Gladstone weak

Closed-end fund Gladstone Capital’s 6.125% notes due 2023 weakened as the afternoon came to a close.

The notes (Nasdaq: GLADD) dropped 40 cents to close at $24.95 with about 258,000 shares trading.

Athene falls

Meanwhile, retirement name Athene’s 6.35% series A fixed-to-floating rate perpetual non-cumulative preference shares fell to lower levels.

The preferreds (NYSE: ATHPrA) were pushed down 40 cents to close at $25.78 on volume of about 246,000 shares.

Indexes down

The Wells Fargo Hybrid & Preferred Securities Financial index capped the day lower by 0.53%, extending a 0.34% loss from Tuesday morning.

The iShares US Preferred Stock ETF was down 28 cents to $35.96.

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