Regions Financial plans $300 million $25-par fixed-to-floating non-cumulative perpetual preferreds

By James McCandless

San Antonio, April 23 – Regions Financial Corp. plans to price a $300 million offering of $25-par series C fixed-to-floating rate non-cumulative perpetual preferred stock with an initial dividend in the 5.875% area, according to a market source and a 424B5 filing with the Securities and Exchange Commission.

Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, RBC Capital Markets, LLC and Regions Securities LLC are the joint bookrunners.

The preferreds are redeemable on or after May 15, 2029 at par. Prior to that, they are redeemable any time after a regulatory capital treatment event.

The dividend is fixed until Aug. 15, 2029, then converts to a floating rate of Libor plus a spread.

Regions Financial plans to use the proceeds for general corporate purposes, which may include repurchases of shares of its outstanding common stock from time to time.

The company plans to list the preferreds on the New York Stock Exchange under the symbol “RFPrC.”

Regions Financial is a Birmingham, Ala.-based financial 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.