Regions Financial Corporation (NYSE:RF) to repurchase preferred stock
The United Plants Preferred Funding Corp, an indirect subsidiary of Regions Financial Corporation (NYSE:RF) had announced that it would repurchase all the preference shares offered by the company under the category of 7.75 percent Non Cumulative Exchangeable Series B Preferred stock. In line with this repurchase offer, Regions Financial Corporation (NYSE:RF) had commenced a consent solicitation by which the beneficiaries of the Series B Preferred Stock will have to submit their consent for the repurchase offer. Further an auction or cash tender offer had also been commenced to repurchase the preferred stock.
It had been informed that beneficial owners approximately 61.1 percent of the outstanding shares of the United Plants Preferred Funding Corp Series B Preferred Stock would be tendering in their shares to be sold at the repurchase offer and would thereby submit their consent at the solicitation for the same. Regions Financial Corporation (NYSE:RF) had offered a purchase price of $117,250 as total consideration value for all those Series B Preferred Stock which are tendered for repurchase on or before June 24, 2013.
Further, Regions Financial Corporation (NYSE:RF) had also announced an early bird offer of $5 per preferred share. The purchase price for Series B Preferred Stock tendered after the Early Tender Date is thereby fixed at a total consideration of $112,250. In addition, the company had also announced that the beneficial owners of the Series B Preferred stock would be entitled to receive accrued and unpaid interest on their owned shares up to the applicable settlement date of the repurchase offer.
The beneficial owners who had tendered their Series B Preferred Stock will also have the option to withdraw their tender before June 24, 2013. The United Plants Preferred Funding Corp. of Regions Financial Corporation (NYSE:RF) is also seeking the consent of shareholders of the company including the owners of the Series B Preferred Stock for the proposed voluntary dissolution of the indirect subsidiary.
The shares of Regions Financial Corporation (NYSE:RF) had declined by 1.50 percent to close at $9.22 per share for the end of last trading session on Tuesday.