Terms

Series

6.600% Non-Cumulative Preferred Stock, Series A

Liquidation Preference

$25.00

Coupon Rate

6.6%

Rate Type

Fixed

Annual Dividend

$1.65

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

March 25, 2024

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Debt Obligations Of Brighthouse Financial, Inc.; Pari Passu With: Parity Stock; 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

17,000,000

Prospectus Summary

Brighthouse Financial, Inc. is offering 17,000,000 depositary shares, each representing a 1/1,000th interest in a share of its 6.600% Non-Cumulative Preferred Stock, Series A, with a liquidation preference of $25.00 per depositary share. The fixed 6.600% coupon equates to $1.65 per depositary share annually ($0.4125 quarterly), payable on the 25th of March, June, September, and December, commencing June 25, 2019. Critically, dividends are non-cumulative: if the board skips a dividend in any period, that amount is permanently lost — holders have no future claim for missed payments. As a holding company issue, these depositary shares sit structurally subordinate to all debt obligations at Brighthouse Financial, Inc. and to all policyholder obligations and debt at its insurance subsidiaries (including Brighthouse Life Insurance Company). Within the equity capital stack, the Series A preferred ranks senior to common stock and all junior stock, and pari passu with any future parity preferred. Because Brighthouse Financial is a holding company dependent on dividends upstream from regulated insurance subsidiaries, payments on the preferred depend on subsidiary cash generation subject to state insurance regulatory restrictions. At the $25.00 offering price, the Series A preferred yields 6.60% annually. Dividends on this C-corporation preferred are expected to qualify for the preferential 15%/20% qualified dividend income (QDI) rate for individual investors, and for the dividends-received deduction (DRD) for eligible corporate holders. The dividend stopper provision prevents Brighthouse from paying dividends on or repurchasing common or junior stock unless Series A preferred dividends for the most recently completed period have been paid in full — though this does not guarantee payment, as dividends remain entirely at the board's discretion each quarter.

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 A preferred stock for the most recently completed dividend period, it cannot pay dividends on or repurchase its common stock or any other junior-ranking stock.

Div Score Breakdown

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