The company says it will accomplish this move by redeeming preferred stock units and by the sale of preferred stock. Regency has priced $125 million of depository shares representing Series 4 Cumulative Preferred Stock. The shares will be redeemable at par at Regency's election on or after Aug. 31, 2009; will pay a 7.25% annual dividend; and will have a liquidation value of $25 per share.
The first dividend will be payable on Sept. 30 of this year and will be prorated, based on a settlement date of Aug. 31, 2004. Regency will use the proceeds from the depository shares offering to redeem $85 million of Series B, 8.75% Preferred Units and $40 million of Series C, 9% Preferred Units on Sept. 3, according to the company's statement.
"As a result of the refinancing, future distributions on this $125 million are reduced by $1.98 million annually," the statement says, without attributing the information to a specific company source.
Citigroup, Merrill Lynch & Co. and Wachovia Securities were joint book-running managers for the Series 4 Preferred Stock offering. Credit Suisse First Boston, Deutsche Bank Securities, Goldman, Sachs & Co., JP Morgan and Raymond James were junior co-managers.
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