Regions Financial (RF) Completes $2.5B Offering, Raising $1.769B

June 18, 2009 5:05 PM EDT

Regions Financial Corporation (NYSE: RF) today announced that it will have raised $2.5 billion when its previously announced exchange offer of common stock for trust preferred securities settles on June 22, 2009. This fully meets the Tier 1 common equity capital requirements prescribed by the Federal Reserve's Supervisory Capital Assessment Program.

The company's public equity offering of common stock, announced May 20, 2009, generated net proceeds of $1.769 billion and its public offering of mandatory convertible preferred stock generated net proceeds of $278 million. The company's previously announced offer to exchange common shares for outstanding 6.625% Trust Preferred Securities issued by Regions Financing Trust II, which expired yesterday, and is expected to settle on June 22, 2009, will generate additional Tier 1 common equity of $172 million.

In addition to these public offerings, the company sold shares it owned in Visa Inc. and other securities, which generated capital of $117 million. As a result of these capital raising efforts, Regions also expects that approximately $200 million of deferred tax assets will be included in the company's Tier 1 common equity buffer required by SCAP.

"Our ability to raise this capital in such a short period of time indicates to us that investors recognize Regions' value and the strength of our franchise," said Dowd Ritter, Regions' chairman, president and CEO.

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