Regions sets exchange ratio in offer for 6.625% trust preferreds

By Jennifer Chiou

New York, June 17 - Regions Financial Corp. announced that it will issue 163.0485 common shares in exchange for each $1,000 liquidation amount of its 6.625% trust preferred securities in the offer to exchange up to 110 million common shares for the trust preferreds issued by Regions Financing Trust II.

Regions previously said it would issue a number of common shares having a value equal to $700 for each trust preferred. The relevant price for the shares was to be the greater of (i) the average volume-weighted average price of Regions shares during the last five trading days of the scheduled exchange offer period and (ii) the minimum price of $2.65 per share.

The company said it determined the ratio by dividing $700 by $4.2932, the VWAP of the shares for the five days ended June 17.

The offer expires at 11:59 p.m. ET on June 17. It began on May 20.

Holders will also receive accrued distributions in cash, which will make the payment around $6.81 per $1,000 liquidation amount of the preferreds.

In addition, the company previously said it is making public offers of $1 billion of shares and $250 million of new mandatory convertible preferred shares.

Questions can be directed to Regions Investor Relations (205 581-7890); Goldman, Sachs & Co. (877 686-5059); or J.P. Morgan Securities Inc. (212 834-3506).

Regions is based in Birmingham, Ala. It is the parent company of Regions Bank.

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