First Republic Bank extends slide; BB&B lower; AMC secured paper flat

By Cristal Cody

Tupelo, Miss., April 26 – Market focus remained on the financial space with First Republic Bank notes down more than 6 points in heavy secondary trading Wednesday following a drop of 14 points to 15 points the previous session.

First Republic Bank’s 4 3/8% subordinated notes due 2046 (B2/B-) declined 7¾ points to hit 24¾ bid on $23.76 million of secondary volume, a source said.

The issue was down 15 points on Tuesday.

First Republic Bank’s stock plunged nearly 50% on Tuesday and slid about 30% more on Wednesday.

Concerns were growing the distressed bank may fail or become the subject of a takeover after it posted a shortfall in first-quarter earnings and deposits, market sources said.

Bed Bath & Beyond Inc. also grabbed a large share of distressed secondary market action Wednesday with the bankrupt retailer’s 5.165% notes due 2044 (C/D) off more than ½ point on nearly $17 million of trading.

The notes went out in the 3 bid area and sported a yield of more than 119%, a source said.

AMC Entertainment Holdings, Inc.’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) attracted secondary interest Wednesday but the notes went out flat at 71½ bid on nearly $10 million of trading, a source said.

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