| Regency Centers to Lower Debt with Share-Sale Proceeds | |
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Regency Centers Corporation REG recently disclosed the physical settlement of its Common Stock Forward Sale Agreements with Wells Fargo Bank, National Association (“Forward Purchaser”), for approximately $186 million. The company plans to use the proceeds to lower its near-term debt obligations and meet other general corporate needs.
According to the forward sale agreements, entered on Jan 14 and Jan 15 of 2015, Regency Centers consented to sell a total of 2,875,000 shares of its common stock at an offer price of $67.40 per share to the Forward Purchaser. This was expected to generate around $193.8 million in proceeds. However, after considering adjustments for interest, dividends and underwriter’s discount, the settlement resulted in net proceeds of $186 million.
Notably, a forward sale agreement is a secured way for companies to raise funds when a need for the same arises. This is because proceeds are generated only when the actual stock issuance takes place. Moreover, a set offer price serves as a hedge against equity market volatility.
Of the total proceeds, nearly $110.7 million will be utilized to partially redeem 5.875% Senior Unsecured Notes due in 2017. The figure includes accrued and unpaid interest (up to the redemption date of Nov 27, 2015), as well as a prepayment premium of approximately $8.1 million.
Wells Fargo Securities, LLC, part of Wells Fargo & Company WFC, acted as the sole underwriter for the above-mentioned offering.
As of Sep 30, 2015, Regency Centers’ total outstanding debt stood at $2.02 billion, while its pro-rata share of cash and cash equivalents was $40.7 million.
Regency Centers currently holds a Zacks Rank #2 (Hold). Investors interested in the retail real estate investment trust space can also consider Agree Realty Corp. ADC and CBL & Associates Properties Inc. CBL. Both these stocks carry the same Zacks Rank as Regency Centers.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WELLS FARGO-NEW (WFC): Free Stock Analysis Report REGENCY CTRS CP (REG): Free Stock Analysis Report CBL&ASSOC PPTYS (CBL): Free Stock Analysis Report AGREE RLTY CORP (ADC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Wells Fargo est une société d’exploration minière basée aux Etats-Unis D'Amerique. Wells Fargo est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 288,6 milliards US$ (263,7 milliards €). La valeur de son action a atteint son plus bas niveau récent le 03 juillet 1997 à 10,01 US$, et son plus haut niveau récent le 10 octobre 2024 à 57,75 US$. Wells Fargo possède 4 997 319 680 actions en circulation. |