Banker First Republic Bank Announces a New Preferred

Bank and wealth management company First Republic Bank (FRC) has announced a new issue of preferred stock.

Issue will be investment grade, non-cumulative and qualified.

The company has stated it may use the proceeds to call all or a portion on the 5.50% non-cumulative FRC-G issue which becomes redeemable on 3/31/2021.

The company press release on the issue can be read here.

Yield talk is in the 4.375% area.

EarlyBird was early on this one.

13 thoughts on “Banker First Republic Bank Announces a New Preferred”

  1. Mr Conservative…..I know the feeling….I used to think the OTC was my private playground.
    But assuming “remembering” isn’t against the law yet….we’re going on 13 years of a Fed funds rate that has ranged between nothing and almost nothing and limitless “quantitative easing” ( which I think would be a great name for a laxative)
    So to hang back for what I think is never going to come, i.e. normalcy may be a long frustrating wait. It’s the New Abnormal in so many ways.

  2. FRC has an outstanding 4.125 preferred trading at a premium. The broker indicated to me that NEWTZ would come at 5.5%, when the market suggested 5.25%. I did some and it was a great flip. The broker is indicating 4.375 on this issue, and it seems as if 4.125 or higher can’t be bad. Am I missing anything?

  3. I’ve accepted this as the new normal. In my wife’s account, I just sold her 5.2% TFCprG ( was going to be called Monday) for $25.30 and replaced it with 4% USBML at $24.70. When trading in my wife’s account, safety is job # 1.

  4. Being early, fast, and get OTC preferreds is not what it used to be. 🙂
    I hope this is not the new normal.
    For now, I have not been buying anything new for months sub 5% unless it has been out for 20+ years. If rates do go up, I dont want to get stuck owning them permanently. Pinned to par with past call, or potential call in short term, mandatory call are mainly for me with higher divies/interest.

      1. Your right. I’m more conservative. At 72 I don’t buy long bonds or green bananas anymore 🙂

        1. @Bill S.

          I’ve in your bracket-plus. I use Absorbine Senior and eat Senior mints.

          Went to the doctor the other day for a checkup. I asked him how I was doing. He replied, “Don’t start any long novels.”

          Bitta bim-bitta boom

      2. Martin, I personally think there is a lot of it in that method. As best as one can control the variables of a perpetual issue anyways.

    1. Mr Conservative, check out CoreCivic 5% 10/15/22 are trading around $97.00 with nearly a 7% YTW. Biden and company want to end private prisons, but that is more than priced in. Plenty of cash flow, and a stable BB rating from S&P makes me comfortable for the next 20 months.

    2. Too many people found this website, so everybody knows to flip the temporary tickers on OTC now. Hard to get a good price.

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