Regions Bank begins tender offer for $250 million 7.5% notes due 2018

By Toni Weeks

San Luis Obispo, Calif., Feb. 12 – Regions Financial Corp. wholly owned subsidiary Regions Bank began a cash tender offer to repurchase up to $250 million principal amount of its outstanding $750 million of 7.5% subordinated notes due 2018, according to a press release.

The purchase price will be determined on Feb. 26 by reference to a fixed spread of 105 basis points over the yield based on the bidside price of the 0.875% Treasury due Jan. 15, 2018.

Noteholders who tender their notes by the early tender date, 5 p.m. ET on Feb. 26, will receive the total consideration, which will include a $30 early tender premium per $1,000 principal amount of notes. Settlement for these notes is scheduled to occur Feb. 27. Holders who tender their notes after the early tender deadline will not receive the early tender premium.

The company will also pay accrued interest to but excluding the settlement date.

The offer expires at 11:59 p.m. ET on March 12, with settlement expected for notes tendered after the early tender date to occur March 13.

Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955, attn: liability management group) is the lead dealer manager for the tender offer. Williams Capital Group, LP and Apto Partners, LLC are co-dealer managers. Global Bondholder Services Corp. (212 430-3774 for banks and brokers or 866 470-4200 for all others) is the depositary and information agent.

Birmingham, Ala.-based Regions is a full-service provider of consumer and commercial banking, wealth management and mortgage and insurance products and services.

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