First Republic Announces Preferred Stock Offering
First Republic Bank (“First Republic”) (NYSE: FRC), a private bank and wealth management company, today announced a public offering of depositary shares, each representing a 1/40th interest in a share of First Republic's Noncumulative Perpetual Series B Preferred Stock, at a public offering price of $25.00 per depositary share. In addition, First Republic will grant the underwriters an option for up to 30 days to purchase additional depositary shares at the public offering price less the underwriting discount. First Republic expects to use the net proceeds from the offering for general corporate purposes, which may include, among other things, funding loans or purchasing investment securities for its portfolio. The offering will also offset the impact on Tier 1 capital of a possible redemption by First Republic's subsidiary, First Republic Preferred Capital Corporation (“FRPCC”), of FRPCC's 7.25% Noncumulative Perpetual Series D preferred stock. The redemption of FRPCC's Series D preferred stock would cause a one-time reduction in net income available to the Bank's common shareholders of $13.2 million, or $0.10 per share, in the quarterly period that FRPCC redeems its Series D preferred stock.
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