AdCare Health prices preferreds; MetLife in focus; JPMorgan Chase sets talk for $25-pars

By Christine Van Dusen

Atlanta, May 28 – AdCare Health Systems Inc. priced perpetual preferred stock on a Thursday that saw MetLife Inc. also receiving some attention.

The latter issuer on Wednesday priced a $1.5 billion offering of 5.25% $1,000-par series C fixed-to-floating rate noncumulative preferreds.

The preferreds were talked in the 5.375% area. Dividends will be fixed and payable semiannually through June 15, 2020. On that date, the dividend will begin to float at Libor plus 357.5 basis points and will be payable quarterly.

Proceeds from the deal – which came via Goldman Sachs & Co., BofA Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC – will be used to repurchase some or all of MetLife’s outstanding 6.5% series B noncumulative preferreds (NYSE: METPB).

In the wake of the new-issue news, the B’s on Wednesday dropped 62 cents to $25.15. On Thursday the preferreds were seen at $25.14. At the close, the preferreds moved down 2 cents to $25.13 on 323,563 shares traded.

In its new deal, AdCare Health Systems priced 588,235 shares at $25.50 per share of its 10.875% series A cumulative redeemable preferred stock (NYSE: ADK.PRA), according to a company filing.

The preferreds have a $25.00 liquidation preference.

The company plans to use the proceeds for general corporate purposes, including the repayment of debt, for working capital and for funding potential acquisitions.

MLV & Co. LLC and Northland Capital Markets were the bookrunners for the Securities and Exchange Commission-registered deal.

JPMorgan sets talk

Also on Thursday, JPMorgan Chase & Co. set talk in the 6.25% area for a $400 million offering of $25-par perpetual preferreds, according to a company announcement.

The preferreds are redeemable in whole or in part after June 15, 2020 at par plus dividends.

The proceeds will be used for general corporate purposes.

JPMorgan is the bookrunner. BofA Merrill Lynch, Citigroup, Morgan Stanley, UBS and Wells Fargo Securities LLC are the joint lead managers for the SEC-registered deal.

In secondary trading, Deutsche Bank Contingent Capital Trust III’s 7.6% trust preferred securities moved down 10 cents to $27.66 on 193.439 shares traded.

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