First Republic Prices Preferred Issue

First Republic Bank (FRC) has priced their previously announced perpetual preferred issue of stock.

The issue prices at 4.00%. The issue is non-cumulative, qualified and investment grade.

The issue will trade immediately under OTC grey market ticker FRBSV.

The company has sold 30 million shares–a relatively huge issue.

12 thoughts on “First Republic Prices Preferred Issue”

  1. Hello, can someone tell me what is otc grey market ticker for this instrument ?At Friday it was FRBSV but now i am assuming it is changed?

  2. I cannot make up my mind on this one. FRC-L is at 26.10 for 4.25% which matches up almost perfectly with this new one at 24.96. I have a feeling I can locate something better in the next 30 days. While this is definitely IG it would be great to at least have a bit of meat left on the bone in case rates tick up a bit.

      1. Oh I understand YTC. I also understand if I patiently wait a month or two and if I can buy something IG paying 4.5% or higher at 25.50 I will come out way ahead as time passes. JPM-L is a good example that was a nice gift in the recent past.

        On top of that JPM-L will resist rates going up better then a 4% preferred which will get hit first. I just don’t feel this pressing need to jump into what is available right now as I type this. It is tough out there for investors looking for yield and some sense of safety.

        Now if I had to buy 200K worth of something I agree it becomes more interesting as opportunities for something liquid are more difficult to acquire but I am only in the 400-1000 share area myself per purchase. I have more choices. I also like to diversify a bit. I don’t mind holding 30 different preferred shares. Perhaps I am not understanding how quite a few people here might have a lot more to invest then I. It is a different world when dealing with larger numbers.

      2. Bob, basically what I am thinking is that a lot of these IG 4% preferred could become the next USB.Q 3.75% one we see trading well under par whenever rates start to tick up and people are essentially stuck with in a more normalized interest rate environment. I realize chances are slim that rates will ever go back up to what we were used to in the past but it is a possibility. Right now a lot of preferred shares are at highs when historically they were a lot lower. Way under par. I am not sure I would be happy with a portfolio of preferred shares paying me 4%… when a year or two from now they are being issued at 5%. It could just be a matter of 12 months and this “could” happen.

        1. FC – I agree, I am not buying 4% preferred either. But if I had to chose between FRC-L and the new issue, at prices indicated, I would go for the new issue.

          That said, I’m finding better opportunities in the non ESG world. Let the snowflakes chase Apple; I’m more into cigarettes, pipelines and coal.

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