First Republic Bank in San Francisco is planning to raise $150 million through a preferred stock offering.
The $29.7 billion-asset company said Thursday that it would sell 6 million shares of noncumulative perpetual preferred stock at $25 each. The stock would carry a 6.2% coupon.
First Republic said the proceeds would be used for a variety of purposes, such as funding loans or purchasing investment securities. The company could also use proceeds to offset the redemption of $60 million of preferred shares held by a unit. Those shares carry a 7.25% coupon, and their redemption would cause a one-time $13.2 million charge to earnings in the quarter that First Republic decides to redeem them.
