First Republic Bank Buys Investment Firm

December 17, 2001 (PLANSPONSOR.com) - San Francisco-based First Republic Bank, a provider of private banking, investment management and trust services announced that is has reached an agreement to acquire Santa Barbara-based Starbuck, Tisdale & Associates, an investment management firm.

Founded in 1933, Starbuck, Tisdale & Associates manages equities and fixed-income securities for high net worth individuals, trusts, endowments and pension plans. The firm’s equity investment style is oriented toward long term, quality growth. The firm will operate independently as a wholly owned subsidiary. The firm currently manages approximately $1 billion in assets.

The Bank will pay approximately $13 million in cash and stock at closing, with additional payments to be made over the next seven years. The acquisition is expected to reach completion in the first quarter of 2002.

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Neuberger Berman Again Escapes Big Bond Buyback

November 5, 2002 (PLANSPONSOR.com) - For the second time this year, money manager Neuberger Berman avoided having to buy back much of a zero-coupon convertible bond issue maturing in 2021 by sweetening the deal.

A Reuters news report said the company only had to pick up a small share of the issue – some $25,000 of the bonds, leaving $166 million outstanding.   Reuters said the company was faced with another major bond buyback in May of as much as $175 million; it ended up only having to pick up $8.7 million worth.

To avoid its own buyback, Neuberger last week offered to pay bondholders semi-annual cash payments, at a rate of 3.047% a year over the next 18 months, for their agreement not to exercise their right to sell the bonds back on Monday, Reuters said.

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In May, Neuberger had offered bondholders both a one-time $4.34 cash payment for every $1,000 in face value, plus the option to sell the bonds back to Neuberger on November 4, Reuters said.

Holders of Neuberger’s convertible bonds still have a right to sell them back to the company on May 4 of 2004, 2006, 2011 and 2016.

Some financial services companies have been successful in avoiding a buyback, and others not. In May, Stilwell Financial Inc. the parent of Janus mutual funds, was forced to spend $614.5 million and draw down part of a bank credit line to buy back its own convertible bonds.

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