By James McCandless
San Antonio, April 23 – Regions Financial Corp. priced an upsized $500 million of $25-par series C fixed-to-floating rate non-cumulative perpetual preferred stock (Ba1/BB+/BB-) with an initial dividend of 5.7%, according to an FWP filing with the Securities and Exchange Commission.
The deal, announced Tuesday morning, was upsized from an initial $300 million and came in under talk for a dividend in the 5.875% area.
There is no greenshoe.
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 314.8 basis points.
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.
| Issuer: | Regions Financial Corp.
|
| Description: | Series C fixed-to-floating rate non-cumulative perpetual preferred stock
|
| Amount: | $500 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, RBC Capital Markets, LLC and Regions Securities LLC
|
| Co-managers: | Academy Securities, Inc., Credit Suisse Securities (USA) LLC and R. Seelaus & Co., LLC
|
| Dividend: | 5.7% until Aug. 15, 2029, then converts to Libor plus 314.8 bps
|
| Price: | Par of $25.00
|
| Yield: | 5.7%
|
| Call: | On or after May 15, 2029; prior to that, any time after a regulatory capital treatment event
|
| Pricing date: | April 23
|
| Settlement date: | April 30
|
| Expected ratings: | Moody’s: Ba1
|
| S&P: BB+
|
| Fitch: BB-
|
| Distribution: | SEC registered
|
| Listing: | NYSE: RFPrC
|
| Talk: | 5.875% area
|
© 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.
