Insurer MetLife (NYSE:MET) has priced their new fixed rate preferred issue at 5.625%. It is a huge issue with 28,000,000 shares being sold with another 4,200,000 being available for overallotment.
The issue in non-cumulative (as are most all insurance and bank issues), and has the normal terms of a optional 5 year redemption period beginning in 2023. Dividends are quarterly of course.
The issue is investment grade and we believe that this is a good issue for those looking for quality with less regard for movement in share price which may go lower if interest rates move higher.
For comparison Allstate sold a non-cumulative 5.625 preferred in March (NYSE:ALL:G) which is now trading around $25.36 (about $25.10 stripped).
UPDATE–issue will trade under the OTC Grey Market ticker MTLLP