Regions to raise $1.25B in stock offering
May 22, 2009
By MoneyAisle
According to the South Florida Business Journal, “Regions Financial Corp. plans to raise $1.25 billion in a stock offering to help meet the federal government’s demands to raise more capital if the economy worsens.”
The company plans on coming up with $1 billion through a common stock offering and $250 million in mandatory convertible preferred shares. However, this will only make up half of the $2.5 billion needed to increase its capital reserves, as required by the government.
Additionally, “Regions finance also plans to sell certain businesses, exchange equity for Regions Bank’s $4.25 of outstanding subordinated debt and $345 million of additional trust preferred securities to come up with the rest of the money.”