JACKSONVILLE, FL --(BUSINESS
WIRE)-- Regency Centers Corporation (“Regency” or the “Company”) (NYSE: REG)
today announced an underwritten public offering of 4,350,000 shares of its
common stock. In addition, the Company will grant the underwriters a 30-day
option to purchase up to an additional 652,500 shares of its common stock.
BofA Merrill Lynch and
Wells Fargo Securities are acting as joint book-running managers for the
offering.
The Company intends to use
net proceeds from the offering, plus available cash balances, to redeem its
outstanding $300 million 5.875% senior unsecured notes due June 15, 2017 (the
“Notes”), including a required make-whole premium.
The Company also intends
to use a portion of the net proceeds to settle in full forward starting swaps
(the “Swaps”) with notional amounts of $220 million. Such Swaps were originally
intended for a planned new debt issuance in 2017 to refinance the Notes now
targeted for redemption. The make-whole premium and Swaps settlement are
expected to total approximately $58 million.
There will be no impact to
Core Funds from Operations (“Core FFO”) as a result of these one-time charges;
however, the combined one-time charges will reduce net income attributable to
common stockholders (“Net Income”) per share and NAREIT Funds From Operations
(“NAREIT FFO”) per share by approximately $0.58 in the third quarter of 2016.
The estimated impacts to
per share amounts for Net Income, NAREIT FFO and Core FFO do not include the
interest savings for the remainder of 2016 as a result of the redemption of the
Notes. The Company intends to use the remaining portion of the net proceeds, if
any, to fund investment activities and for general corporate purposes.
For a complete copy of the company’s news release,
please contact:
Regency Centers
Corporation
Patrick Johnson,
904-598-7422
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