First Republic Bank notes, equity skid; Bausch Health moves up; Community Health gains

By Cristal Cody

Tupelo, Miss., April 25 – First Republic Bank’s paper sank about 14 points to 15 points in strong trading volume in the distressed market on Tuesday, sources reported.

The 4 3/8% subordinated notes due 2046 (B2/B-) dropped 15 points to 34 bid on $10 million of volume.

First Republic Bank’s stock plunged 49.37% by the close.

The bank on Monday reported income fell 32.9% and deposits dropped 35.5% as depositors fled in the wake of the collapse of Silicon Valley Bank and other banks in March.

“Of course, First Republic’s sudden hemorrhaging of deposits mostly reflected customer concerns about the bank’s stability,” a Confluence Investment Management note on Tuesday said. “Nevertheless, the firm said deposits have been continuing to drift lower this month, suggesting that customers continue to look for higher returns in mutual funds, Treasury bills, and the like.”

Distressed paper in the health care space got a lift on Tuesday, sources said.

Bausch Health Americas, Inc.’s 8½% senior secured notes due 2027 (Ca/CCC-/CC) were up 2 points at 52¾ bid.

Community Health Systems Inc.’s 6 7/8% senior secured notes due 2029 (Caa2/CCC) climbed nearly 2½ points to 72½ bid on $5.5 million of trading.

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