Brighthouse Financial to Sell New Preferred issue

Insurance and annuity company Brighthouse Financial (BHF) has announced they will sell a new issue of preferred stock.

BHF has a number of issues currently outstanding which can be seen here. None of these issues are currently redeemable

The new issue should be split investment grade–IG from S&P and a couple notches under from Moody’s.

The preliminary prospectus can be found here.

J was on top of this one.

6 thoughts on “Brighthouse Financial to Sell New Preferred issue”

    1. Moody’s rates it Ba2.
      https://www.moodys.com/research/Moodys-rates-Brighthouses-senior-unsecured-notes-at-Baa3-and-preferred–PR_1000005414?cid=GAR9PTU7VKT2671

      RATINGS RATIONALE

      The Baa3 senior unsecured debt rating on Brighthouse Financial and the A3 insurance financial strength (IFS) ratings of its insurance company subsidiaries are based on the Brighthouse’s solid asset quality, with modest amount of exposure to high-risk assets, namely below-investment grade securities and alternative investments. Brighthouse’s capital adequacy is strong, largely to enable the company to proactively manage the volatility and tail risk associated with its variable annuity block.

      These strengths are mitigated by risk exposures related to a concentration of legacy variable annuities, mostly with guarantees, managing a run-off block of institutional spread businesses and universal life with secondary guarantees and modest projected statutory capital generation partially due to the high cost of hedging market sensitive liabilities.

      The Ba2(hyb) rating on the preferred securities reflects Moody’s typical notching for instruments issued by insurers relative to their IFS and senior debt ratings. Because of equity-like features contained in the preferred stock, the security will receive partial equity treatment in Moody’s leverage calculation and adjusted leverage will improve as a result of the transaction.

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