Regions Financial (RF) in Birmingham, Ala., has wrapped up a tender offer to lower its debt expense.
The $120 billion-asset company said Monday that it plans to retire $350 million worth of 2014 bonds on which it pays a 7.75% interest rate. It will close the tender offer Monday, earlier than it planned, after receiving more than $765 million in tenders on the notes it proposed to retire.
The company plans to fund the tender offer with the proceeds from a public offering of $750 million of 2% notes due 2018, which was announced last month.
Goldman Sachs (GS) and Morgan Stanley (MS) were the dealer managers for the tender offer.
Regions announced earlier this month that it would redeem nearly $500 million in trust-preferred securities, following a proposal by the Federal Reserve to exclude Trups debt from calculations of regulatory capital.
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