Regency Centers-linked exchangeable for $300 million talked to yield 1.5-2.0%, up 20%

By Ronda Fears

Nashville, June 13 - Citigroup Global Markets Holdings Inc. is selling an estimated $300 million synthetic mandatory as part of General Electric Capital Corp.'s monetization of its $1.2 billion stake in Regency Centers Corp., which it inherited in the acquisition of Security Capital Group Inc. last year.

The three-year issue, in the SynDECS structure, will be convertible into Regency shares pledged by Security Capital.

Citigroup is sole bookrunner for the offering. Merrill Lynch & Co. is co-lead manager.

The issue is talked to yield 1.5% to 2.0% with the initial conversion premium set at 20%. All current dividends on the stock will be passed through to holders, plus 83.333% of any increase in the common dividend.

There is a 15% greenshoe available.

Pricing is scheduled for after the close Wednesday following a roadshow.

GECC also plans to sell up to 34.3 million Regency shares through an underwritten common stock offering and in private-sale contracts with certain underwriters. It will also sell back to Regency up to $150 million of shares at the public offering price.

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