By James McCandless
San Antonio, June 2 – Regions Financial Corp. priced a $350 million offering of $1,000-par series D non-cumulative perpetual preferred stock (Ba1/BB+/BB) with a dividend of 5.75%, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Regions Securities LLC are the bookrunners.
Dividends are payable on March 15, June 15, Sept. 15 and Dec. 15, starting on Sept. 15, 2020.
The dividend is fixed until Sept. 15, 2025, then resets to the five-year Treasury rate plus 542.6 bps. The rate will reset every five years after the initial reset date.
The preferreds are redeemable within three months prior to each reset date or following a regulatory capital treatment event at par.
Regions Financial plans to use the proceeds for general corporate purposes.
The company does not plan to list the preferreds on any securities exchange.
Regions Financial is a Birmingham, Ala.-based financial holding company.
| Issuer: | Regions Financial Corp.
|
| Description: | Series D non-cumulative perpetual preferred stock
|
| Amount: | $350 million, or 350,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Regions Securities LLC
|
| Co-managers: | MFR Securities, Inc., R. Seelaus & Co., LLC and Samuel A. Ramirez & Co., Inc.
|
| Dividend: | 5.75% until Sept. 15, 2025, then resets to the five-year Treasury rate plus 542.6 bps; resets every five years after the initial date
|
| Price: | Par of $1,000
|
| Yield: | 5.75%
|
| Call: | Within three months prior to each reset date or following a regulatory capital event at par
|
| Pricing date: | June 2
|
| Settlement date: | June 5
|
| Ratings: | Moody’s: Ba1
|
| S&P: BB+
|
| Fitch: BB
|
| Distribution: | SEC registered
|
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