Regions outlines details of $1B stock sale - Memphis Business Journal:

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billion by discounting its sharesto $4 a piece and selling 250,000 preferre shares. In efforts to raiss $2.5 billion required by the U.S. government, the Birmingham-based bank put 400 millio n shares of its common stocj up for salethis Also, the underwriters will have a 30-dauy option to buy up to an additionaol 15 percent of shares in both The preferred stock will pay annual dividends at a rate of 10 the bank said Thursday in a written statement. The public sale is slated to end onMay 27. Afterf running “stress tests” on the nation’s top 19 federal regulators ordered Regions to shore up its capitap position to help sustain loan losse if the cataclysmiceconomyy worsens.
Regions CEO Dowd Ritterd said the bankis “pleased to have completede a substantial portion of our capital plan so Plans to raise the other half of the money coulds include selling certain initiating a possible debt-to-equity swap and convertinhg its trust preferred securities into common Regions, the largest financial institution in was one of 10 financial institutions requirecd to fortify its balancre sheets after results of the test, officially known as the Supervisoryg Capital Assessment Program. The bank’zs closest peers, Atlanta’s SunTrust Banks Inc. and Cincinnati’sw Fifth Third Bancorp., were also told to raised additional capital.
Regions Financial RF) is the parent company of Regionsz Bankand Memphis-based Morgan Keegan & Co. Inc. Regionzs Bank is the second-largest bank in the Memphizs market based on deposits and maintains the largesr branch bank network in the Memphixmetro area.