By Stephanie N. Rotondo
Phoenix, Oct. 25 - Regions Financial Corp. priced $500 million 6.375% series A noncumulative perpetual preferred stock at par of $25.00, the company said in an FWP filed with the Securities And Exchange Commission on Thursday.
Price talk was for a dividend 6.375% to 6.5%, which was revised from earlier talk of 6.625%.
On Tuesday, the Birmingham, Ala.-based bank said it was considering such an issuance, provided market conditions remained favorable.
The preferreds were issued as depositary shares representing a 1/40th interest. Dividends will be paid quarterly on the 15th day of March, June, September and December, beginning Dec. 15.
The shares can be redeemed, in whole or in part, on or after Dec. 15, 2017, or in whole within 90 days of a regulatory capital treatment event.
Regions has applied to list the new issue on the New York Stock Exchange under the ticker symbol "RFPA."
Joint bookrunners are Morgan Stanley & Co. LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, UBS Securities LLC and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes, which may include the redemption of higher coupon trust preferreds.
| Issuer: | Regions Financial Corp.
|
| Securities: | Series A noncumulative preferred stock
|
| Amount: | $500 million
|
| Greenshoe: | $50 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Lead manager: | Raymond James & Associates Inc.
|
| Co-managers: | Barclays, Deutsche Bank Securities Inc.
|
| Dividend: | 6.375%
|
| Price: | Par of $25.00
|
| Yield: | 6.375%
|
| Talk: | Initially 6.625%, then revised to 6.375% to 6.5%
|
| Call option: | On or after Dec. 15, 2017 or upon the occurrence of a regulatory capital treatment event
|
| Pricing date: | Oct. 25
|
| Settlement date: | Nov. 1
|
| Expected ratings: | Moody's: B3
|
| Standard & Poor's: BB
|
| Fitch: B
|
| Expected symbol: | NYSE: RFPA
|
| Cusip: | 7591EP308
|
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