Insurer Brighthouse Financial to sell Baby Bonds

Large life insurance and annuity company Brighthouse Financial (NYSE:BHF) has announced that they will be sell a new baby bond issue with a maturity date in 2058.

The new subordinated debentures will trade under the permanent ticker symbol of BHFAL.  There will be no trading on the OTC grey market prior to permanent market trading.

The issue will have an early redemption available to the company starting 9/15/2023.

We note that this issue does give the company the ability to defer interest payments for 1 or more consecutive interest periods that do not exceed five years.  Of course this term does show up from time to time in baby bonds–normally in utility issues, and certainly may be unacceptable to many investors.

The issue has not yet been priced.

The preliminary prospectus can be found here.

 

6 thoughts on “Insurer Brighthouse Financial to sell Baby Bonds”

    1. Hi RazorbackEA–I hope it is that high. I know virtually nothing about them and won’t have an interest because of the 2058 maturity, but at 6.25% maybe they will be tempting for some.

  1. This is the MetLife spinoff (or dump of “we don’t want that stuff anymore” depending on how you view it…).. there have been a lot of challenges as int rates stay low.. will be interesting to see how this trades, the common has dropped from 70 to 41 since the spinoff.. I am sure institutions will scarf this up despite the issues.. good for them. David Einhorn loves the common .. good for him.. no tanks…

    it seems like one of those issues that when the economy slows down will price to a 9-10% yield.. Bea

    1. Bea–you are probably right–they don’t spin off the ‘jewels’.

  2. The symbol is up on Fidelity and Etrade this morning for those interested in seeing how it initially trades.

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