Hancock sells $25-par notes; Brighthouse Financial rises; JPMorgan preferreds better

By James McCandless

San Antonio, May 26 – On the first day of a holiday-shortened week, the preferred market closed with a positive push.

The primary space saw Hancock Whitney Corp. sell an upsized $150 million offering of $25-par subordinated notes due June 15, 2060 at par with a coupon of 6.25%.

Leading secondary trading, Brighthouse Financial Inc.’s 6.75% series B non-cumulative perpetual preferred stock rose.

Meanwhile, in the finance space, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative preferred stock ended better.

Sector peer First Horizon National Corp.’s recent 6.5% series E perpetual non-cumulative preferred stock followed the upward trend.

Truist Financial Corp.’s 5.25% series O non-cumulative perpetual preferred stock gained with the market.

Elsewhere, in telecom, AT&T, Inc.’s 4.75% series C perpetual preferred stock improved by the close of the session.

Hancock prices

The primary space saw Hancock Whitney sell an upsized $150 million offering of $25-par subordinated notes (Baa3/BBB-) due June 15, 2060 at par with a coupon of 6.25%.

There is a $22.5 million greenshoe.

The deal, announced on Tuesday morning, was upsized from an original $100 million and came at the low end for a coupon in the 6.25% to 6.275% area.

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

The notes are redeemable on or after June 15, 2025 at par. Prior to that, the notes are redeemable within 90 days after a change in law that prevents the company from deducting interest from the notes, a regulatory capital event or if the company is required to register as an investment company.

Brighthouse rises

Leading Tuesday’s secondary trading, insurance provider Brighthouse’s 6.75% series B non-cumulative perpetual preferred stock rose.

The preferreds (Nasdaq: BHFAO) were up 36 cents to close at $25.36 on volume of about 1 million shares.

On Friday, the preferreds added 11 cents.

JPMorgan better

Meanwhile, in the finance space, JPMorgan’s 4.75% series GG non-cumulative preferred stock ended the afternoon in a better position.

The preferreds (NYSE: JPMPrJ) improved by 14 cents to close at $24.85 with about 510,000 shares trading.

Sector peer First Horizon’s recent 6.5% series E perpetual non-cumulative preferred stock followed the upward trend.

The preferreds, trading under the temporary symbol “FHNCL,” garnered 22 cents to close at $24.94 on volume of about 509,000 shares.

Truist Financial’s 5.25% series O series O non-cumulative perpetual preferred stock gained with the rest of the market.

The preferreds, trading under the temporary symbol “TFCLL,” picked up 20 cents to close at $25.15 with about 498,000 shares trading.

AT&T adds

Elsewhere, in telecom, AT&T’s 4.75% series C perpetual preferred stock improved by the close of the session.

The preferreds (NYSE: TPrC) moved up 8 cents to close at $23.15 on volume of about 203,000 shares.

Indexes up

The Wells Fargo Hybrid & Preferred Securities Financial index capped the day up by 0.45%, lower than the 0.68% spike from early Tuesday trading.

The iShares US Preferred Stock ETF was up 30 cents to $34.63.

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