Terms

Series

6.750% Non-Cumulative Preferred Stock, Series B

Liquidation Preference

$25.00

Coupon Rate

6.75%

Rate Type

Fixed

Annual Dividend

$1.69

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

June 25, 2025

First Call Price

$25.00

Capital Stack Ranking

Junior To: Debt Obligations Of Brighthouse Financial, Inc.; Pari Passu With: 6.600% Non-Cumulative Preferred Stock, Series A; Senior To: Common Stock, Junior Stock

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.001

Shares Offered

14,000,000

Prospectus Summary

Brighthouse Financial, Inc. is offering 14,000,000 depositary shares, each representing a 1/1,000th interest in a share of its 6.750% Non-Cumulative Preferred Stock, Series B, with a liquidation preference of $25.00 per depositary share ($25,000 per underlying preferred share). Dividends accrue at 6.750% per annum ($1.6875 annually, or $0.421875 per quarter, per depositary share) and are payable quarterly on March 25, June 25, September 25, and December 25, commencing September 25, 2020. Because the dividends are non-cumulative, any missed dividend period is permanently lost — the company has no obligation to make up unpaid dividends in future periods. The Series B preferred stock ranks senior to Brighthouse Financial's common stock and all other junior stock as to dividends and liquidation distributions, and on a parity with the existing Series A (6.600%) preferred stock. As a holding company obligation, the Series B preferred is structurally subordinated to all liabilities of Brighthouse Financial's insurance subsidiaries (Brighthouse Life Insurance Company, New England Life Insurance Company, and Brighthouse Life Insurance Company of NY), meaning subsidiary creditors have a prior claim on subsidiary assets before any value flows up to the holding company to support preferred dividends or liquidation. No regulatory capital call provision was disclosed in the available filing excerpt. At the $25.00 per depositary share liquidation preference, the current yield is 6.75%. Dividends are expected to qualify for the 15%/20% preferential qualified dividend income (QDI) rate for individual investors and the dividends-received deduction (DRD) for qualifying corporate holders, as Brighthouse Financial is a domestic C-corporation, though investors should confirm with their tax advisors. If the Series B preferred stock has not been paid full dividends for the most recently completed dividend period, Brighthouse Financial is blocked from declaring or paying dividends on its common stock or repurchasing any junior stock — a meaningful protection for preferred holders, though the non-cumulative structure means any skipped dividend remains permanently forfeited.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Brighthouse Financial has not paid full dividends on the Series B preferred stock for the most recently completed dividend period, it cannot pay dividends on or repurchase its common stock or any other stock ranking junior to the Series B preferred.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 57 (Average)