Regions to Repurchase Trust-Preferred Securities

Regions Financial (RF) will redeem roughly $345 million in trust-preferred securities using proceeds from a recent preferred stock offering.
 
Regions will pay $25 for each trust-preferred security in December, along with any accrued and unpaid interest, the $121.3 billion-asset company said Thursday.
 
The Birmingham company said in October that it was considering a public offering to raise funds for general corporate purposes, including the repurchase of its trust-preferred securities. Regions said in a regulatory filing Wednesday that it was issuing Series A preferred stock.
 
Banks are redeeming trust-preferred securities to prepare for stricter capital standards that will begin being phased in next year. Under a provision of the Dodd-Frank Act, banks with at least $15 billion of assets as of Dec. 31, 2009, will no longer be able to count trust-preferred securities as part of Tier 1 capital.
 
Other banks that have announced plans to redeem trust-preferred securities include Bank of New York Mellon (BK), Huntington Bancshares (HBAN) and Bank of America (BAC).