OFS Credit sells preferreds; Invesco starts at-the-market offering; Brighthouse tops par

By James McCandless

San Antonio, March 19 – As the preferred primary market continued to chug along, volume leaders were mixed in the backdrop of an overall market decline.

OFS Credit Co., Inc. priced $20 million of $25-par series A term preferred stock due 2024 at par with a dividend of 6.875%.

Meanwhile, Invesco Mortgage Capital Inc. entered into an agreement to sell up to $175 million total of three series of preferreds.

Leading trading volume, Brighthouse Financial, Inc.’s new $425 million 6.6% series A non-cumulative preferred stock closed above par.

Elsewhere in insurance, American International Group, Inc.’s 5.85% series A non-cumulative perpetual preferreds declined.

In finance, JPMorgan Chase & Co.’s 6% series EE and 5.75% series DD non-cumulative preferred stock was also negative.

Utilities name Southern California Edison, a subsidiary of Edison International, saw its 5.75% fixed-to-floating rate cumulative trust preference securities end slightly better.

And Pennsylvania Real Estate Investment Trust’s 6.875% series D cumulative redeemable perpetual preferreds moved lower.

OFS prices preferreds

OFS Credit priced $20 million of $25-par series A term preferred stock due 2024 at par with a dividend of 6.875%.

There is a $3 million greenshoe.

The deal was announced on Monday.

Ladenburg Thalmann & Co. Inc., BB&T Capital Markets, Incapital LLC and National Securities Corp. are the joint bookrunners.

Invesco on tap

Invesco Mortgage entered into an agreement to sell up to $175 million total of its 7.75% series A cumulative redeemable preferred stock, 7.75% series B fixed-to-floating rate preferred stock and 7.5% series C fixed-to-floating rate cumulative redeemable preferred stock.

JonesTrading Institutional Services LLC is listed as the sales agent.

The company is offering up to $37.5 million of the series A preferreds, $37.5 million of the series B preferreds and $100 million of the series C preferreds.

Brighthouse above par

On its first day of trading, Brighthouse Financial’s new $425 million issue of 6.6% series A non-cumulative preferred stock was spotted above par at the end of the session.

The preferreds, trading under the temporary symbol “BHFLL,” were seen closing at $25.06 on volume of about 1.8 million shares.

The deal priced on Monday.

Elsewhere in the insurance space, AIG’s 5.85% series A non-cumulative perpetual preferreds declined.

The preferreds (NYSE: AIGPrA) lost 6 cents to close at $25.19 with about 291,000 shares trading.

On Monday, the preferreds fell 3 cents.

JPMorgan weakens

Meanwhile, in the finance space, JPMorgan’s 6% series EE and 5.75% series DD non-cumulative preferred stock followed the negative path.

The series EE preferreds (NYSE: JPMPrC) were down 21 cents to close at $26.39 on volume of about 456,000 shares.

On Monday, the preferreds dropped 17 cents.

The series DD preferreds (NYSE: JPMPrD) were down 12 cents to close at $25.80 on volume of about 240,000 shares.

On Monday, the preferreds lost 49 cents.

SoCal Edison up

In the utilities space, Southern California Edison’s 5.75% fixed-to-floating rate cumulative trust preference securities were positive, bucking the prevailing trend.

The preferreds (NYSE: SCEPrH) picked up 2 cents to close at $23.25 with about 411,000 shares trading.

Pennsylvania REIT off

Pennsylvania REIT’s 6.875% series D cumulative redeemable perpetual preferreds also ended worse off.

The preferreds (NYSE: PEIPrD) slipped 5 cents to close at $20.52 on volume of about 366,000 shares.

Indexes down

By the close, the Wells Fargo Hybrid & Preferred Securities Financial index was down 0.40%, compounding the 0.04% loss seen shortly after the open.

The iShares US Preferred Stock ETF was down 15 cents to $36.45.

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