First Republic plans private stock sale to raise cash: reports
By Claudia Assis
First Republic stock sinks another 6% in after hours
First Republic is seeking to raise money from other banks or private-equity firms by selling new shares, the New York Times reported late Friday, citing people with knowledge of the discussions.
First Republic stock (FRC)sank 33% on Friday, and the shares were down another 6% in the extended session. The bank, which late Thursday received a $30 billion cash infusion from 11 major U.S. banks, has disclosed higher borrowing costs and suspended its dividend.
See also: First Republic Bank downgraded to 'junk' by S&P and Fitch on fears further deposit flight will hurt profitability
According to the report, terms of a deal are still being discussed, and a sale of the bank is also possible.
Contagion fears have rocked bank stocks after the failures of Silicon Valley Bank, Signature Bank and Silvergate Bank in the past week.
Related:Startups and VCs need another Silicon Valley Bank. Can any other bank fill the void?
San Francisco-based First Republic is seen as a potential fourth bank to fail because it served many wealthy clients from venture capital and banking around Silicon Valley.
First Republic stock ended the week down 86%, compared with weekly losses of 11% for the S&P 500 index.
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 17, 2023 17:14 ET (21:14 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.