Brighthouse Financial Inc. Prices Giant Preferred Issue

Insurer Brighthouse Financial Inc (BHF) has priced their newly announced preferred stock issue.

As expected the issue comes with a coupon of 5.375%.

They will be selling 20 million shares with an over allotment of another 3 million shares–for potential gross proceeds of $575 million.

The issue is split investment grade, non cumulative and qualified for preferential tax treatment.

The issue will trade immediately on the OTC grey market under temporary ticker BTHFL.

The pricing term sheet can be found here.

9 thoughts on “Brighthouse Financial Inc. Prices Giant Preferred Issue”

  1. I had a lot of exposure to BHF, a LOT. I went big. So the Q was to hold or to roll into new issue. There are very few 5 5/8 YTC out there.

    I show BHFAL at 27 a 3.66 ytc. BHFAP at 27 a 4.33 ytc and BHFAO at 27.40 a 4.65………So where do they go vs. the new one BTHFL. Higher coupons are going to be more defensive new issue maybe more chance for appreciation. I was just looking at another (company) one of those move where 4.70’s have rallied 8% since I held my nose and moved from old/higher into new/par.

    I wouldn’t be surprised to see 26+ here in short order

      1. I get ytc quotes to the third decimal place, but can do that type computation by hand. That’s a very important consideration eoz!! . Sometimes machines make mistakes and you have to eyeball/ double check accuracy. New issues are normally where mistakes can happen. Even if your person has a bloomberg. You need to be able to estimate and account for accrued interest too!

    1. If you prefer–are you still holding all those issues? Have you decided to roll into the new issue or not?

      1. I moved only a couple positions. Unless I moved em into the par offering at 25… it just wasn’t enough differential. And I got caught being distracted by a side issue so it was a case of being caught sleeping.

        Because of constraints I can’t trade for pennies. It’s got to be dollars and yield differential great enough to warrant. If you trade for no fee it’s probably worth consideration. I have a lot of one next to zero of the other two.

    1. I’ll buy up to 25.17 and wait 3-4 weeks till it gets to 25.75 and then sell for a 2% gain. Easy Peasy. Wait, I heard laughing, who did that?, oh it’s God.
      Never mind.

  2. I’ve done math on a napkin and determined the Share price this new issue should fetch using the other 3 issues as a guide.
    I believe the price to buy this is anywhere under 25.50 (adjusted downwards for Election Euphoria of 1% rise).
    Anyone else do the math yet?

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