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Good luck deciphering the arcane debt-related announcements that Synovus served up Tuesday. To translate: the company bought itself some time as it faces a series of tough decisions, including whether to sell itself or not.
February 7 -
Expect more debt exchanges and cash tender offers from banks in the coming months. The strategy is rational and the alternatives for generating equity are limited at best.
December 12
Regions Financial (RF) in Birmingham, Ala., plans to dissolve a real estate investment trust after retiring its debt.
The $120 billion-asset company has made a tender offer for certain debt of Union Planters Preferred Funding, a REIT subsidiary that it then plans to dissolve, it said Monday. Holders of 61% of the preferred shares have indicated that they intend to accept the offer, which will cost Regions approximately $72 million.
Union Planters Preferred Funding will then seek its shareholders consent to dissolve, Regions said.
The preferred shares to be bought back pay a 7.75% interest rate. The tender offer will run through July 12. Goldman Sachs (GS) is the dealer manager.
Regions
