Regions launches $25-par fixed-to-floating noncumulative preferreds

By Stephanie N. Rotondo

Phoenix, April 24 - Regions Financial Corp. is offering series B fixed-to-floating rate noncumulative perpetual preferred stock, the company said in a prospectus filed with the Securities and Exchange Commission on Thursday.

Goldman Sachs & Co. Deutsche Bank Securities Inc., JPMorgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunning managers. Regions Securities LLC is the lead manager.

When declared, dividends will be payable quarterly at a fixed rate through Sept. 15, 2024. At that time, the dividend will begin floating at Libor plus a spread but will continue to be paid quarterly.

The Birmingham, Ala.-based bank can redeem the preferreds on or after Sept. 15, 2024 or in whole after a regulatory capital treatment event at par plus accrued dividends.

The preferreds will be issued as depositary shares representing a 1/40th interest.

The company has applied to list the new securities on the New York Stock Exchange under the ticker symbol "RFPB."

Proceeds will be used for general corporate purposes, which may include common stock repurchases.

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