Regions greenshoe exercised, raising convertibles to $287.5 million

New York, June 18 - Regions Financial Corp. said it raised net proceeds of $278 million from its offering of 1.5-year mandatory convertible preferred stock, reflecting exercise of the greenshoe.

The company originally priced $250 million of the convertibles on May 20 with a 15%, or $37.5 million, greenshoe.

Exercise of the over-allotment option raises the deal to $287.5 million.

The preferreds were priced with a dividend of 10% and an initial conversion premium of 10%.

Concurrently Regions priced $1.6 billion of common stock, or 400 million shares at $4 a share. The 15% greenshoe was also exercised on the stock.

Goldman, Sachs & Co. and J.P. Morgan Securities Inc. were joint bookrunning managers of both registered offerings, with Morgan Keegan & Co. Inc. as lead manager.

Regions also carried out an exchange offer of common shares for its outstanding 6.625% trust preferred securities, under which Regions will issue no more than 112 million shares of common stock. The response was $202 million, or 28.9%, of the $700 million liquidation amount.

Regions is a Birmingham, Ala.-based financial services holding company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.