Back to top
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Bank of America Corporation (BAC) - $25 value - yours FREE >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bank of America Corporation (BAC) - $25 value - yours FREE >>
Image: Bigstock
First Republic Bank (FRC) Issues 3.5 Million Common Shares
San Francisco-based private bank and wealth management company, First Republic Bank announced the public offering of 3.5 million shares of its common stock at approximately $287 million, excluding underwriting discounts and commissions and expected offering expenses. The offering is expected to end on or around Nov 18, 2016, subject to certain conditions.
First Republic Bank has permitted a 30-day option to the underwriters for covering over-allotments, if any. The option includes the purchase of an additional 0.525 million shares of common stock.
JPMorgan Chase & Co. (JPM - Free Report) , Morgan Stanley (MS - Free Report) , UBS Investment Bank and BofA Merrill Lynch, a unit of Bank of America Corp. (BAC - Free Report) , are acting as the joint book-running managers.
The net proceeds from this offering are anticipated to be used for general corporate purposes. These purposes might include funding of loans and purchase of investment securities. Further, debt repayment and other operational needs can be met through the funds.
During third-quarter 2016, First Republic Bank originated loans worth $6.5 billion. As of Sep 30, 2016, the bank’s total long-term debt came in at $4.6 billion.
Though the unsettled economic environment and stringent regulatory issues remain concerns, the latest capital raising move will aid the company in reducing its total debt burden to some extent. On the other hand, First Republic Bank’s capital ratios will improve and the bank will be able to pursue growth and acquisition opportunities.
First Republic Bank currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>