Brighthouse Financial Prices Baby Bonds

As predicted by our reader RazorbackEA Brighthouse Financial has priced a new issue of baby bonds with a coupon of 6.25%.

There will be 15,000,000 shares sold (with another to cover overallotments of 2,250,000) and they will have a maturity date of 9/15/2058.  An early redemption is possible beginning 9/15/2023.

Quarterly payments will start on 12/15/2018.

This issue allows the company to defer interest payments for one or more consecutive periods that do not exceed five years without a default being declared.

The issue will trade under the ticker of BHFAL within the next 30 days.  There will be no OTC grey market trading with this debt issue.

The final term sheet can be seen here.


3 thoughts on “Brighthouse Financial Prices Baby Bonds”

  1. Now trading at 24.90 for those who are interested. I am interested for a 1 year trade at a lower price

    1. Thanks Steve–I had been watching for a number of these new baby bonds to start trading–seems like they are taking longer in between pricing and trading than in the past.

      1. Yes. I have found some early information. I cannot vouch for the accuracy. It may be a waste of time.

        Fidelity allows a CUSIP lookup. I have been watching DUK and QVC. Those show “3rd Party Price / Recent Trades”. The new CUSIP’s for Duk is at $24.63 and QVC is at $24.23. I assume this is institutional investors getting to trade before the rest of us. It may be somewhat indicative of where it will price when it begins trading. I am monitoring to see if it really is indicative of anything.

        I did this for Prudential (PRS). The lowest “3rd party price” I found before trading was $24.75, it opened and traded around $24.90. Made sense, I’d expect institutional buyers to get the best deal. Helped frame my expectation that I would not get it at $24.75 before it actually opened.

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