First Republic selling $150 million noncumulative preferred stock; price talk 5.25%

By Stephanie N. Rotondo

Seattle, May 31 – First Republic Bank intends to price $150 million of series H noncumulative perpetual preferred stock (expected ratings: Baa3/BBB-), the company said in a press release on Wednesday.

Price talk is 5.25%, according to a market source.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

The $25-par preferreds will be issued as depositary shares representing a 1/40th interest.

Proceeds will be used to fund the company’s previously announced redemption of its 6.2% series B noncumulative preferreds (NYSE: FRCPrB), which will take place June 16. Any remaining funds will be used for general corporate purposes, which may include funding loans or purchasing investment securities for its portfolio.

First Republic is a San Francisco-based private bank and wealth management company.

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