First Republic Bank Prices New Preferred Issue–Update

The OTC Ticker has been announced as FRCLP

California banker First Republic Bank (FRC) has priced their new issue of perpetual preferred stock.

The issue was priced at 4.25%. The issue is investment grade, non cumulative and qualified.

This issue should trade today on the OTC grey market–but the ticker has not been announced. I will post an update when the ticker is known.

The company press release can be read here.

The preliminary prospectus can be read here.

Note that First Republic Bank files with the FDIC and not the SEC and their data on these new offerings can be found on there website and on the FDIC website–but not on the SEC Edgar site.

4 thoughts on “First Republic Bank Prices New Preferred Issue–Update”

  1. FRCLP.

    Trading right at 25. It’s in a statistical dead heat yield wise with 4.15% RFC-K and just a nose ahead of 4.70% FRC-J. In other words, no money left on the table.

    No reason to prefer the new P over the K and if I were forced to buy I would probably go with the J. Yields are slightly lower but the higher coupon gives it a higher convexity, which is desirable in a falling rate environment.

    1. Exactly.

      Anytime you’re looking at a new issue you’ve got to compare it to all the existing outstanding issues.

  2. I purchase almost exclusively bank preferreds. Don’t own this name. May buy a small piece just for the name. You could add FRC.K and CFG.E to your bank list. Thanks. Really enjoy the web site. Use it allot. Thanks.

    1. One way I look at pfd’s is are they A, B, C, or D’s. Or 1st tier, 2nd, 3rd, 4th.

      FRC’s have historically traded very well/rich. They seem to be ‘generally equivalent’ to 1st tier top rated pfd.

      I think I saw these friday at 24.70?

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