First Republic Bank to sell subordinated notes

By Lisa Kerner

Charlotte, N.C., July 25 – First Republic Bank announced a public offering of its subordinated notes on Monday.

The company expects to use the proceeds for general corporate purposes, which may include funding loans or purchasing investment securities for its portfolio.

First Republic may also use the proceeds, along with cash on hand, to redeem, subject to regulatory approvals, its 6.7% noncumulative perpetual series A preferred stock, which is redeemable at First Republic’s option, in whole or in part, on or after Jan. 30, 2017.

The subordinated notes are intended to qualify as tier 2 capital for bank regulatory purposes, according to a news release.

BofA Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunners.

First Republic Bank is a San Francisco-based private banking institution.

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