Insurance and annuity company Brighthouse Financial Inc. (BHF) has announced a new issue of non cumulative preferred stock.
The terms are normal for a large insurer–non cumulative, but qualified for preferential tax treatment.
The company currently has 2 preferred issues and 1 baby bond issues outstanding that trade very strongly–you can see them here. Of course the coupons on these issues are high–6.25% to 6.75% so you would expect them to trade with high valuations in this low interest rate environment.
This new issue is rated low investment grade (BBB-) by Standard and Poor’s, but Ba2 by Moody’s – a couple notches below investment grade.
‘Yield Talk’ is in the 5.375% to 5.50% area.
EarlyBird was the earlybird on this one.