Regions Financial 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 is the dealer manager.
Regions retired $350 million in debt through a tender offer that closed last month, which it funded with a public offering of $750 million of 2% notes.
