By Andrea Heisinger
New York, April 26 - Regions Financial Corp. sold $750 million of 2% five-year senior notes to yield 137.5 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The split-rated notes (Ba1/BBB-/BBB-) were sold at 99.666 to yield 2.07%.
There is no call option until April 15, 2018. After that date the notes can be redeemed at par plus accrued and unpaid interest.
Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including the purchase of notes through a tender offer. The proceeds may also be used to redeem common stock or repurchase or redeem other outstanding securities, including trust preferred shares.
Regions was last in the U.S. bond market with a $750 million sale of notes in two tranches on April 21, 2010. That offering included a 5.75% five-year note sold at 350 bps over Treasuries.
The financial holding company for banking and money management subsidiaries is based in Birmingham, Ala.
| Issuer: | Regions Financial Corp.
|
| Issue: | Senior notes
|
| Amount: | $750 million
|
| Maturity: | May 15, 2018
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Co-managers: | Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Raymond James & Associates, Regions Securities LLC, Samuel A. Ramirez & Co. Inc.
|
| Coupon: | 2%
|
| Price: | 99.666
|
| Yield: | 2.07%
|
| Spread: | Treasuries plus 137.5 bps
|
| Call: | Non-callable until April 15, 2018, then at par plus interest
|
| Trade date: | April 25
|
| Settlement date: | April 30
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
© 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.
