Private Banker First Republic Bank Sells a New Preferred Issue

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Private banker First Republic Bank (NYSE:FRC) has sold a new preferred stock offering whose shares are now trading on the OTC Grey Market under temporary ticker FRCPP. 

As a banking company, the issue is required to be non-cumulative, so if dividends are not declared they are gone forever. In addition, the issue is investment grade. 

The issue has the normal five-year optional redemption that allows the company to redeem the shares at its discretion as early as March 30, 2021. Typically, the issuer will redeem the shares in what we call a “refinancing” transaction on the optional redemption date, if it can issue new shares at a coupon at least ¼-½% below the coupon on just-issued shares. 

Complete details of the issue are available here

To compare this issue with other First Republic Bank preferred issues outstanding, you can easily check them on our “swaps” page. The company has six other issues outstanding. 

For those interested in buying on the OTC Grey Market, we offer a “primer” thatexplains the process.


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Tim McPartland

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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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