» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 124 | NO. 119 | Friday, June 19, 2009

Regions Wins 29 Percent Acceptance for Swap

AP

Print | Front Page | Email this story | Comments ()

BIRMINGHAM, Ala. (AP) - Regions Financial Corp. said Thursday that it achieved nearly 29 percent acceptance of its capital-raising offer to exchange up to 110 million shares of common stock for $700 million in debt securities.

By the exchange offer's deadline on Wednesday night, holders of about $202 million worth of 6.625 percent trust-preferred securities had agreed to the swap, out of a total $700 million eligible for the exchange, the Birmingham-based regional bank said.

When the exchange offer is settled June 22, about 33 million in shares of Regions common stock will be issued to those who accepted the offer. The issuance of additional shares will dilute the value of existing shares.

The exchange offer is one of the steps Regions Financial has taken to satisfy the U.S. Treasury Department's demand that it raise $2.5 billion to bolster its cash position. The demand came after government stress tests determined Regions would require more capital to survive any further weakness in the economy.

On May 20, the Birmingham, Ala.-based bank said it would raise $1.85 billion by selling 400 million common shares and 250,000 convertible preferred shares.

On Tuesday, Fitch Ratings downgraded the long-term issuer default rating of Regions Financial and its Regions Bank subsidiary, saying the bank is unlikely to make a profit this year and reported serious deterioration in the quality of its loans during the first quarter. On Wednesday, Regions was among 18 banks whose ratings were cut by Standard & Poor's amid concern about further weakening in the financial sector.

Shares of Regions Financial rose 9 cents to $4.08 in Thursday morning trading.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 65 366 17,721
MORTGAGES 70 417 23,068
FORECLOSURE NOTICES 0 76 4,504
BUILDING PERMITS 210 932 42,157
BANKRUPTCIES 62 299 16,691
BUSINESS LICENSES 19 80 5,781
UTILITY CONNECTIONS 49 305 25,174
MARRIAGE LICENSES 16 96 5,381

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.